The Iran-US war is now taking a new route, the one that is projecting a looming oil crisis if the conflict continues for an extended period of time. In a recent interview, US president Donald Trump has shown an unbending stance towards Iran, stating how he can continue fighting for weeks. Moreover, he later added how wars can be fought forever with the unlimited weapons that the US currently has in store with itself. Amid such turbulent narratives, how may the oil and gas prices get impacted if this war continuation stretches beyond normal timelines? If the Strait of Hormuz shutdown extends for long, how high will oil and gas prices be expected to spike?

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Oil and Gas Prices to Spike Significantly If Strait of Hormuz Stays Closed for Long

A new statement by Donald Trump is now portraying a tumultuous stance for the global energy sector. Trump has shown a lasting stance against the war with Iran, refusing to lessen its tactics against the other nation. This has led Iran to officially announce the closure of the Strait of Hormuz. Per the latest update shared by Walter Bloomberg, Analyst Bob McNally has warned that if this crucial trade point remains shut for days, oil and gas prices may end up spiking as high as $100 and $4, respectively. The oil prices at present have surged as high as $77 ever since US and Israeli strikes on Iran began to take lethal shape.

The last time crude oil and gas prices went above $100 was the time when Russia attacked Ukraine in 2022.

Moreover, in a turning list of events, Trump has shared another major update, adding how he will ensure the global energy flow remains smooth and undisturbed in such a wake of events. Trump has ordered the US Navy to escort oil tankers from the Strait of Hormuz, despite the closure announced by Iran.

“BREAKING: President Trump announces that effective IMMEDIATELY, the US Navy will escort tankers through the Strait of Hormuz, as Iran threatens to close it. “No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD. The United States’ ECONOMIC and MILITARY MIGHT is the GREATEST ON EARTH—more actions to come.”

Intensifying Energy Crisis

The ripple effect of this closure has already started to show its effects. The majority of the countries have a limited oil supply at present. If this closure extends beyond predicted timelines, it may inflate the supply crisis even more, making it difficult to manage the oil pricing and structure. For instance, India currently has 25 days of crude oil left, as confirmed by the sources, which is one of the narratives that may turn chaotic if Hormuz does not open anytime soon.

“India has 25 days of crude oil and refined oil stocks. Scouting for alternative sources for importing crude oil, LPG, and LNG. Govt Sources: No Immediate Plan to Raise the Prices of Petrol-Diesel: Govt Sources.”

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