The U.S. Acknowledges Political Risks of War. When to Expect Peak Fuel Prices?
U.S. Energy Secretary Chris Wright stated that the peak of global oil prices is likely to occur in the coming weeks, following the resumption of shipping through the Strait of Hormuz.
This was reported by RBC-Ukraine, citing Reuters.
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U.S. Energy Secretary’s Forecast
Speaking at the Semafor economic forum in Washington, Chris Wright noted that energy prices will remain high and may even rise until “real” volumes of ships start passing through the strait.
“We will see a peak in oil prices around that time. This will happen in the next few weeks,” Wright said.
He also reported an increase in oil production in Venezuela following Nicolás Maduro’s takeover and reforms in oil legislation. Since January 3, 150 million barrels of Venezuelan oil have been sold, with production increasing by 25%.
Trump’s Acknowledgment
U.S. President Donald Trump stated on Sunday that oil and gasoline prices could remain high until the November midterm elections. This is a rare acknowledgment of the potential political consequences of his decision to initiate war against Iran six weeks ago.
Situation in the Strait of Hormuz
Since the start of the war (February 28), Iran has effectively closed the Strait of Hormuz to all vessels except its own. Tehran is attempting to make its control over the waterway permanent and may impose a toll for passage.
In response, the U.S. Navy has imposed a blockade of the strait, extending it to the Gulf of Oman and the Arabian Sea. Tracking data shows that two tankers turned around in the strait after the blockade began.
Recall that on April 11, negotiations between the U.S. and Iran regarding the nuclear program took place in Pakistan, ending without results as Tehran rejected the American demands.
After the dialogue failed, Donald Trump announced a maritime blockade of the Strait of Hormuz: U.S. ships will intercept all vessels that have paid Iran a toll for passage.
The U.S. President also warned that in the event of an attack by Iranian forces on American ships, Washington would “send the Iranians to hell.”
In Tehran, the response came: Iranian Parliament Speaker Mohammad Bagher Ghalibaf stated that soon everyone will nostalgically remember gasoline prices of $4-5.
