WORLD NEWS – Iran closes the Strait of Hormuz and oil and gas prices skyrocket after 3 days of lower prices

By Renae Hefty

After three days of lowering oil prices while Iran promised the Strait of Hormuz would open soon, prices have skyrocketed with a new announcement from Iran’s Islamic Revolutionary Guard Corps that the Strait of Hormuz will remain closed. U.S. Secretary of Energy Chris Wright said on Sunday that gas prices could take a year to fall to what they were before the war with Iran began. However, Trump is claiming Wright is incorrect and gas prices could fall much sooner. He said the prices would fall as soon as the war with Iran ends. According to the AAA motor club, the average price of regular gas was $4.47 and $5.35 per gallon on May 10.

As the world feels the impact of the closure of the strait, analysts have calculated how Iran’s economy may be affected. 80% of Iran’s oil exports are usually transported through the strait. Over the past month, the price of Iranian oil has not fallen below $90 per barrel. According to Kpler, a trade intelligence firm, Iran exported 55.22 million barrels of oil from March 14 to April 15, which means it earned an estimated $4.97bn over the last month from oil exports. Iran’s crude oil profits have gone up 40% since the war started, from $3.45bn a month. The U.S. blockade is expected to take away this boon for Iran’s economy, experts say. Tuesday, Trump claimed on Truth Social that Iran is losing $500 million every day of the U.S.’s blockade, which started April 13.