President Trump says the U.S. will keep its naval blockade of Iranian ports in place “for as long as it takes,” tightening pressure on Tehran’s oil exports and global energy markets.
The blockade itself is already squeezing Iran’s oil exports hard, cutting them by more than half and bottling up ships near the Strait of Hormuz.
Analysts say some of these vessels are sending out fake signals to cover their tracks, making enforcement even more complicated. Meanwhile, the bigger issue isn’t going anywhere, with the U.S. pushing Iran to shut down its nuclear program and Iran flat-out refusing.
All of this has caused oil prices to jump past $123 a barrel globally, with U.S. crude over $110, and gas now averaging about $4.23 nationwide, according to AAA. If this drags on, expect those prices to stick around and possibly climb even higher.