Patrick de Haan, the head of Gasbuddy’s head of petroleelerry analysis, says that an increase in gas prices of a potential Iranian closure of the street of Hormuz “would not last long.”
Trump refers to the change of regime in Iran and explains ‘Iran making great again’ after US Strikes
“When Iran states that the street of Hormuz is being closed, you see a quick peak in oil beyond the vessel of $ 80,” De Haan explained. “That could result in a national average of $ 3.40 to $ 3.50. If they are slightly successful in performing that, oil could go even higher, but it would probably be temporary.”
Iranian navy soldiers at an armed speedboat in the Persian Gulf near the Strait of Hormuz just south of Tehran, on April 30, 2019. (Morteza Nikoubazl / Nurphoto via Getty Images / Getty Images)
“Continue incorrect/false rumors talk about an incoming huge peak [gas prices]”The gas buddy expert Posted on X. “This is incorrect. Incorrect in the highest order.”
The street of Hormuz is approximately 21 miles wide at the narrowest point. It lies between the Gulf of Oman and the Persian Gulf and serves as a bandage by the Arab Sea. The most important natural waterway is technically governed by the United Nations Convention on the Law of the Sea, but the great military presence of Iran in the region would give them the ability to limit the passage.
How Iran would close the Strait of Hormuz would affect us, the world
Markets ended a little higher on Monday with fluctuating oilutures, but remain mainly during early trading hours.
“Keep in mind that oil was only a few weeks ago in the low to the mid -60s,” De Haan added. “Oil producers had cut back on rigs. That is the number of American rig, a sign of where oil production can go, have actually shown that American production can approach a peak, at least temporarily, due to low oil prices.”
President Donald Trump gives an address on the Nation from the White House in Washington on June 21, 2025, DC (Carlos Barria – Pool / Getty Images / Getty images)
But the downward trend in the oil price now stands for an increased conflict in Iran. De Haan said that a movement to close the street of Hormuz ‘would also act to suppress Iran’s own economy’.
Vice President JD Vance It also noted that a decision to close the passage would be a blow to Iran’s finances, in which NBC’s “Meet the Press” was told that the closing of the street could “destroy their economy”.
“Their entire economy runs through the street of Hormuz,” VANCE explained. “If they want to destroy their own economy, this can cause disruption in the world. I think that would be their decision, but why would they do that?”
The Iranian parliament voted for the closing of the passage on Monday and signaled potential unity in the middle -east to continue with the decision.
Get Fox Business on the Go by clicking here
