Economist Justin Wolfers, on Monday, highlighted growing concerns over prolonged high gasoline prices amid ongoing tensions in the Strait of Hormuz.
Hormuz Disruption To Fuel Long-Term Gas Prices
Wolfer, in a post on X, said “Strait of Hormuz uncertainty isn’t just pushing up today’s gas prices — it’s lifting futures through 2027 and beyond.” Wolfers said that Energy Secretary Chris Wright’s optimism may already be “outdated.”
The economist posted, “Until we get resolution, expensive gas isn’t going anywhere soon.”
The disruption at the Strait of Hormuz, which accounts for a one-fifth share of global oil shipments, will not only drive the gas prices higher now but will continue to lift in the future years. Consumers may feel the pinch at the pump for many months to come.
The remarks came after tensions escalated over the weekend following a naval conflict in the Gulf of Oman. President Donald Trump announced on Truth Social that U.S. forces fired on an Iranian container ship in the Gulf of Oman after it tried to breach a U.S. naval blockade.
U.S. crude oil jumped more than 7% to about $90 per barrel and Brent climbed 5% to around $95 per barrel at the time of writing.
Gas Price Are Surging
Gas prices have been rising since the U.S.-Israeli war broke in late February. According to AAA, prices surged to $4.04 as of Apr. 20, up from around $3.00 at the end of February. However, prices have dropped from $4.125 a week ago.
On Sunday, Wright said on CNN that gas prices might have peaked, but they would stay above $3 per gallon until next year.
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