Gas at $4.50 — is the Iran Blockade Making it Worse? (2 of 5)

Experts don’t seem to agree. In fact, many predict the price of gas will remain high well into the future now that Iran has been able to demonstrate its ability to prevent ships from passing through the Strait of Hormuz. But some members of the Trump administration are already distancing themselves from the war, declaring that it is over.

In mid-April, the U.S. Congress rejected a War Powers Resolution requiring the president to get authorisation from Congress in order to maintain military forces in a conflict for more than 60 days. Ah, but a senior administration official said the vote wasn’t necessary since the hostilities had “terminated.” The Speaker of the House, Mike Johnson, concurred, saying the US is “not at war” with Iran. Sigh. 

But the ultimate arbiter of truth is the markets. Sort of. Sometimes, anyway. U.S. crude oil prices continue to jump despite claims that “the war is over.” Redditors aren’t particularly happy with the state of things either. Conversations in r/Indiana, r/Iowa, r/Pennsylvania, and other communities have discussed how gas prices have risen by $2 per gallon.

Commodities analysts at Citigroup have warned that if the blockade continues through the end of June, the price of international benchmark Brent crude oil could reach $150 per barrel. They are also skeptical that the regime in Iran will collapse, even if all of its oil output is curtailed, since it could simply print more money and take other measures.