Why the Iran War Is Driving Gas Prices Higher: Hormuz, Oil Supply, and What Comes Next
Why the Iran War Is Driving Gas Prices Higher: Hormuz, Oil Supply, and What Comes Next Quick Answer The Strait of Hormuz is severely disrupted, but describing it as completely sealed off oversimplifies what is happening. Before the war, roughly one-fifth of global petroleum liquids moved through Hormuz, making even partial disruption economically significant. Saudi Arabia and the UAE have pipelines that bypass the strait, but those alternatives cannot fully replace normal Gulf shipping. The IEA reported in September that Brent was about 45% above pre-war levels while global oil supply was projected to fall by 5.7 million barrels per day in 2026. For U.S. drivers, the national average retail price for regular gasoline reached $4.319 per gallon for the week of September 14, 2026. Gas prices do not rise simply because traders see a frightening headline. The current energy shock is the result of physical supply losses, damaged infrastructure, ...