No Fear: GasBuddy Analyst dismisses claims of 'massive' gas price surge due to Strait of Hormuz disruption
Gas price predictions of a significant surge are, according to a GasBuddy expert, flat-out wrong on the topmost scale.
GasBuddy's petroleum analysis honcho, Patrick De Haan, has declared that alarming rumors about a colossal spike in gas prices due to an Iranian shutdown of the Strait of Hormuz are utterly false.
In an exclusive interview with Fox News Digital, De Haan, the head of petroleum analysis, addresses the escalating concerns caused by President Donald Trump's weekend strike on Iranian nuclear facilities and the possibility of Iran shuttering the Strait of Hormuz — a vital waterway that facilitates approximately one-fifth of the world's crude oil trade.
De Haan, the GasBuddy authority on fossil fuels, emphasized that while a brief surge in gas prices is plausible, it would not persist long. He pointed out that, despite Iran's potential actions, oil prices would still remain well below the records set in 2008. In the worst-case scenario, consumers might have to contend with an increase of $3.40 to $3.50 per gallon at the pump.
Headlines suggesting an imminent worldwide catastrophe in terms of gas prices are unfounded, according to the GasBuddy expert. Going as far as to label these reports as erroneous and on the highest level of inaccuracy, De Haan slammed such speculations as misleading and counterproductive.
The Strait of Hormuz, located off the Iranian coast, stretches roughly 21 miles at its narrowest point. Governed by the United Nations Convention on the Law of the Sea, this vital natural waterway connects the Gulf of Oman and the Persian Gulf and serves as a passage through the Arabian Sea. Although the strait technically falls under the jurisdiction of the United Nations, Iran's substantial military presence in the area would grant the country the ability to restrict traffic.
Concerns about the Strait of Hormuz's potential closure impacting both the U.S. and the global economy have been renewed in the face of recent geopolitical tensions, with Russia claiming that the U.S.'s strikes on Iranian facilities could lead to a global "nuclear catastrophe."
Meanwhile, Vice President JD Vance voiced concerns that Iran shuttering the strait would significantly harm the Iranian economy, as well as disrupt global oil markets. According to Vance, closing the strait would be an act of economic self-destruction. However, he questioned Iran's motivation to carry out such a move, expressing doubt over the country's rationale behind such an action.
- Markets are closely watching the potential impact of the Strait of Hormuz disruption on trading, with concerns it could disrupt energy supplies and drive up the prices of stocks in the finance industry.
- Despite GasBuddy analyst Patrick De Haan's prediction of a brief surge, gas prices are not expected to reach the record highs seen in 2008, according to general news reports.
- The escalating political tensions between the US and Iran have raised worries about the stability of the global economy and business practices, particularly in the energy sector.
- The Strait of Hormuz, a crucial waterway for oil trade between the Gulf of Oman and the Persian Gulf, is attracting attention from finance and industry analysts due to geopolitical concerns.
- In the midst of these apprehensions, Vice President JD Vance has expressed fears that any Iranian move to shutter the strait could have a devastating effect on the Iranian economy, leading to disruptions in global markets.
