US-Iran War Enters Sixth Month with Global Oil Prices Still on the Rise

The six-month-old US-Iran war has had far-reaching consequences for global oil and gas prices. The conflict began on February 28, when President Donald Trump announced a military operation against Iran in coordination with Israel. Trump initially predicted the war would last four to five weeks.

However, as the war stretches into its sixth month, disruptions to the oil supply chain at the Strait of Hormuz persist. This has pushed gas prices up worldwide. According to AAA, the average gallon of regular gas cost $4.10 as of August 26, compared to $3.19 at this time last year.

The Strait of Hormuz is a critical waterway that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It accounts for about 20% of global oil shipments. The closure of this strait impacts the amount of oil able to be transported to the United States, resulting in higher prices for both oil and gas.

In a radio interview on August 26, Trump stated that the Strait is 'functioning,' but acknowledged that there may still be occasional drone or rocket attacks. He also said he was 'not in a hurry' for negotiations with Iran to resume.