An Open Strait of Hormuz Won’t Fix Gas Prices Overnight
On Wednesday evening, President Donald Trump officially signed a Memorandum of Understanding with Iran, a deal that sets off a 60-day ceasefire and longer-term nuclear talks between the two nations. It also, critically, reopens the Strait of Hormuz, that narrow waterway between Iran and Oman that usually serves as one of the globe’s vital energy shipping routes, with 20 million barrels of oil moving through daily.
By Thursday morning, 10 vessels that had been stranded for all 110 days of the US-Iran war began moving out of the area, according to Windward, a maritime intelligence firm. The Strait of Hormuz seems open for business.
But experts say that US consumers shouldn’t expect gas prices—which have jumped more than 35 percentnationally since late February—to recover soon. Shippers are still nervous about the tenuous peace in the Strait, which remains seeded with an indeterminate number of underwater mines....
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