President Trump recently stated that disruptions at oil refineries are the primary reason behind the rising gas prices, rather than Iran’s closure of the Strait of Hormuz, which followed the onset of the U.S.-Israeli conflict with Iran. He expressed his views on Truth Social, attributing the issue to refinery circumstances, mentioning attacks by Ukraine on Russian refineries and closures in places like California.
Tom Kloza, chief petroleum analyst at Gulf Oil, commented that while Trump’s assertion regarding the Russia-Ukraine war affecting prices is somewhat accurate, the price of crude oil from the Persian Gulf has surged to $33 per barrel, compared to $1.75 in February. Kloza pointed out that increased insurance, freight, and risk premiums contribute to this price hike, indicating that such risks remain despite the volume of crude not declining significantly since the end of February.
Trump’s social media post followed another where he highlighted the impact of Ukrainian military strikes on Russian infrastructure, noting that such actions have significantly affected Russia’s diesel oil industry. Trump wrote that a large percentage of Russian diesel refineries have been damaged, an assertion following his conversation with Ukrainian President Volodymyr Zelensky. Moreover, the Ukrainian Defense Ministry claimed responsibility for disabling 51% of Russia’s oil refining capacity, leading to widespread fuel shortages.
The ongoing conflicts have disrupted global energy markets, with the closure of the Strait of Hormuz contributing to the national gas price increase, now averaging close to $4.50. In contrast, the previous year saw an average of $3.13. As of this week, the average U.S. gasoline price is $4.37, and diesel is about $6.53, according to AAA.
Efforts to resolve these conflicts include ongoing negotiations led by U.S. envoys Steve Witkoff and Jared Kushner to end the four-year war between Russia and Ukraine. New York Times reports mention a potential multibillion-dollar deal that could involve Middle Eastern business affiliates linked to the U.S. negotiators.
Rising gas prices have emerged as a significant political issue as the midterm elections approach. Many Republican politicians are urging the end of the conflict with Iran to help reduce these prices.
Reported by Rachel Frazin.