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Traffic and trepidation in the Persian Gulf could keep gasoline prices from dropping quickly
Oil prices fell after the reopening, but analysts said shipping delays, security risks and damaged infrastructure could keep fuel costs elevated for months.
- On Friday, President Donald Trump and Iran's foreign minister announced the Strait of Hormuz is fully open to commercial vessels, ending almost seven weeks of war and triggering a 10% oil price plunge and stock market rally.
- Gasoline averaged $4.08 per gallon Friday, a 37% increase from pre-conflict levels, as energy experts warn fuel prices may remain elevated for months due to shipping delays and infrastructure damage.
- Over 150 tankers remain anchored near the Strait, creating a traffic jam, while damage to energy infrastructure in the Middle East—including refineries in Saudi Arabia and Kuwait—delays normalization.
- GasBuddy's Patrick De Haan projects prices will drop 1 to 3 cents every day or two, potentially reaching $3.45 to $3.65 by Memorial Day, though full normalization may take until next year.
- Shipping fuel to Europe and refining it requires a 10-week lag time, meaning supply chain constraints will persist even as the waterway reopens and pre-war price levels remain a distant prospect.
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20 Articles
Associated Press News+17 Reposted by 17 other sources
Traffic and trepidation in the Persian Gulf could keep gasoline prices from dropping quickly
Oil prices plunged and the stock market rallied after U.S. President Donald Trump and Iran’s foreign minister said that the Strait of Hormuz is fully open.
·United States
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After U.S. President Donald Trump and Iran's Foreign Minister announced the total reopening of the Strait of Ormuz to commercial navigation after nearly seven weeks of war, oil prices plummeted by 10% and the stock market registered a sharp upturn on Friday.
Coverage Details
Total News Sources20
Leaning Left9Leaning Right1Center6Last UpdatedBias Distribution56% Left
Bias Distribution
- 56% of the sources lean Left
56% Left
L 56%
C 38%
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