You may pay more for gas after Iran closes Strait of Hormuz oil route
In retaliation for U.S. and Israeli attacks, Iran says it has closed the Strait of Hormuz, a crucial Middle Eastern export route that carries 20% of global oil flows, resulting in a halt of petroleum shipments and a surge in oil prices.
The announcement came two days after the start of the war, which has spread across the region. At least five oil tankers in the strait have been damaged, and 150 ships have been stranded.
"The strait is closed,” said an official of Iran’s Revolutionary Guard Corps on March 2. “If anyone tries to pass, the heroes of the Revolutionary Guard and the regular navy will set those ships ablaze.”
The U.S. military, however, says it has destroyed Iran's navy from the air.
As of midday March 3, the price of a barrel of Brent crude, the global benchmark, hovered near $83, up roughly 25% from the start of the war.
The national average price for a gallon of gasoline increased by about 18 cents from March 1 to March 3, according to GasBuddy. It was unclear whether gas prices would continue to rise, or for how long.
Here's a closer look at the vital waterway:
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More than 3,000 ships use the strait every month. Most of them transport crude oil, refined petroleum – the equivalent of about 20 million barrels of oil a day – and liquid natural gas from Persian Gulf docks to ports in China, India, Japan and South Korea.
A portion of oil shipments go to Europe, and about 4% of crude oil exports head to the Americas.
How has tanker traffic changed over time?
This animation, provided by Marine Traffic, shows a visible reduction in vessels transiting the strait between Feb. 27 and March 3. Tankers, shown in red, can be seen waiting on either side of the waterway.
Where is the Strait of Hormuz?
The 100-mile-long Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.
The strait is one of three major waterways allowing transport of natural gas and petroleum exports from the Persian Gulf to Europe and North America. Others are the Bab el-Mandeb and the Suez Canal. Iran's southern border extends along the length of the Gulf.
How have gas prices changed in the U.S.?
GasBuddy tracked an increase in the national average for regular gasoline from $2.941 a gallon on March 1 to $3.12 on March 3. Higher prices may be coming if the war continues; retail gas prices move about 2.5 cents for every $1 move in the price of crude oil, according to NBC News.
President Donald Trump told reporters March 3 that oil prices may be high "for a little while.”
As soon as the war ends, “these prices are going to drop, I believe even lower than before,” Trump said. The president also said the United States has the ability to fight Iran "forever" without running out of weapons.
The prices of consumer goods tied to crude, like gasoline and home heating oil, move in roughly the same proportion, so they are also likely to jump in the coming days and weeks. USA TODAY reported.
Where were oil tankers attacked?
The tankers that have been reported attacked are:
MT Skylight | oil/product tanker (Palau‑flagged).
- Where: About 5 nautical miles north of Khasab, Musandam, in the Strait of Hormuz.
- When: March 1
- What happened: The ship was hit and caught fire. Four crew members were injured and 20 were evacuated.
MKD VYOM | product tanker (Marshall Islands–flagged).
- Where: Forty-four to 50 nautical miles from off Muscat in the Gulf of Oman.
- When: March 1-2
- What happened: The ship was apparently struck by a projectile from a drone boat, causing an engine room fire. One crew member was killed; the rest were evacuated.
Hercules Star | tanker (Gibraltar-flagged)
- Where: About 17 nautical miles from Mina Saqr, UAE.
- When: March 1
- What happened: Reported strike; ship continued its voyage.
Stena Imperative | tanker (U.S.-flagged)
- Where: Docked at Mina Salman, Bahrain.
- When: March 2
- What happened: The ship was damaged by an aerial strike as part of an Iranian attack on Bahrain. No casualties were reported on the ship, but a dock worker was killed and two were injured.
Athe Nova | bitumen tanker (Honduras-flagged)
- Where: Strait of Hormuz.
- When: March 2
- What happened: The Iran Revolutionary Guard said the ship caught fire after it was attacked off the coast of Khor Fakkan.
What will happen next?
The Trump administration has given no clear timeline for how long the war could last. Trump said it could be about four weeks.
Vice President JD Vance has indicated the United States is locked in a “multi-year” conflict, and Secretary of State Marco Rubio has predicted "the hardest hits are yet to come."
Trump, in a social media post March 3, promised insurance and even military escorts for maritime trade.
"If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible. No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD."
CONTRIBUTING Francesca Chambers, Michael Loria, Zac Anderson, Jeanine Santucci
SOURCE USA TODAY Network reporting and research; Reuters; U.S. Energy Information Administration; GasBuddy; aaa.com; MarineTraffic; Globalmaritimetraffic.org
This is a developing story and may be updated.