The Strait of Hormuz: Why Trump’s Iran ultimatum matters for oil markets
Trump hints at possible Iran deal during ongoing negotiations
An F-15E airman shot down in Iran has been rescued as negotiations between the United States and Tehran continue, Fox News chief foreign correspondent Trey Yingst reported. Brig. General John Teichert (Ret.) provides analysis on ‘Sunday Briefing’.
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There are few places on the planet as important to the global economy as the Strait of Hormuz.
That’s why President Donald Trump He gave Iran until Tuesday to allow all ships to pass through the important waterway; otherwise it will face attacks on critical infrastructure as fuel costs rise worldwide.
In a profanity-laced post on Truth Social on Sunday, Trump wrote: “Tuesday will be Power Plant Day and Bridge Day, all in one place, at the same time. Iranian. Nothing like this will happen!!! F—–‘ Open your throat, you crazy bitch, or you’ll live in Hell – JUST WATCH! Praise be to Allah.”
“Tuesday, 8:00 PM Eastern Time!” he wrote in a second post.
Trump also said he would hold a press conference with military officials at the White House on Monday.
SAN FRANCISCO BECAME THE FIRST US CITY WHERE DIESEL PRICES RISED TO $8 PER GALLON
A satellite image shows the Strait of Hormuz, a key maritime passage connecting the Persian Gulf to the Gulf of Oman and vital for global energy supplies. (Amanda Macias/Fox News Digital)
The waterway between Iran, Oman and the United Arab Emirates is just 34 miles wide at its narrowest point and is one of the world’s most critical energy chokepoints. It carries about 20 million barrels of oil a day, as well as about a fifth of global liquefied natural gas.
It is also an important artery for refined fuels. According to Jaime Brito, OPIS’ general manager of refining and petroleum products, the Middle East exports about 1.1 million barrels of jet fuel per day; This accounts for approximately 15% to 17% of global consumption. Most of this supply passes through the Strait of Hormuz.
The increase is already causing oil, gasoline, diesel and jet fuel prices to rise sharply around the world.
According to AAA, the national average for regular gasoline as of April 5 was $4.11 per gallon; This was up 86 cents from the previous month. Drivers see the highest costs on the West Coast; prices reach $5.92 per gallon in California and $5.37 in Washington.
WHERE GAS PRICES INCREASED THE FASTEST WHILE TRUMP GIVES A NEW WARNING TO IRAN
on the East Coast, gas prices It exceeds $4 in several regions, including $4.27 in Washington DC and $4.06 in New York.
In the Midwest, Illinois stands out at $4.29 per gallon, while much of the region falls in the mid-$3 range. Although prices have increased, southern states remain cheaper overall. Texas and South Carolina average $3.82, with Florida higher at $4.20.
Diesel rose about $1.45 last month to $5.61. As a key fuel for shipping, shipping and public transport, it is particularly vulnerable to supply disruptions.
Diesel surpassed $5 for the first time since December 2022, according to data compiled by AAA. (Rebecca Noble/Bloomberg via Getty Images)
Inside SanFranciscoprices rose even further. According to GasBuddy, for the first time in history average diesel costs exceed $8 per gallon; This is an unprecedented milestone for any US city.
Additionally, U.S. jet fuel prices have more than doubled in a matter of weeks as tensions in the Middle East tighten supply.
TRUMP SHOWS AN UNEXISTENT TOOL TO FIGHT RISING OIL PRICES IN THE MIDDLE OF IRAN CONFLICT
Prices rose from about $2.11 in January to $4.88 per gallon on April 2. Argus US Jet Fuel IndexComparative daily viewing prices in Chicago, Houston, Los Angeles and New York.
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Jet fuel, one of airlines’ biggest expenses, is particularly volatile due to low inventories, private storage and limited spot trading. This can increase price fluctuations when supply tightens.
Airlines have warned that stocks could run out within weeks, increasing the risk of higher airfares and flight cancellations.
