US-Iran Tensions Spike Gas Prices Amid Strait of Hormuz Dispute
The escalating tensions between the US and Iran over the Strait of Hormuz have sparked concerns about rising gas prices. Iran's plan to create an 'exclusion zone' around the waterway, which connects major oil producers to global markets, has raised fears that commercial shipping could be disrupted.
The announcement comes just a day after the US struck three Iranian oil tankers in response to Tehran launching missiles at US warships. Experts have described the situation as 'a dangerous escalation' of tensions between the two countries.
The average price for a gallon of regular gas is currently $4.15, up from $3.19 just one year ago. Energy Secretary Chris Wright remains optimistic about energy prices, stating that US Navy operations are 'winning the battle' to keep oil transits through the Strait flowing at around 9 million barrels per day.