Trump's Iran Strikes Push Gas to $4.45 as Tariffs Deepen U.S. Economic Damage
Updated
Updated · The Globe and Mail · May 15
Trump's Iran Strikes Push Gas to $4.45 as Tariffs Deepen U.S. Economic Damage
3 articles · Updated · The Globe and Mail · May 15
U.S. gasoline has climbed to $4.45 a gallon, up 60% this year, after Trump's late-February strikes on Iran helped trigger what the IEA called the largest oil supply disruption in history.
Brent crude has jumped 80% to $110 a barrel, the Strait of Hormuz remains shut, and damaged infrastructure could keep oil flows below prewar levels for months, feeding broader price pressures.
March CPI reached 3.3%—the highest since April 2024—and a Cleveland Fed model points to 5.6% inflation in the second quarter, a path that could force Federal Reserve rate hikes.
Tariffs still in effect have lifted the average tax on U.S. imports to 11.8%, the highest since the 1940s, while new Section 301 duties are expected this summer after temporary 10% global tariffs bought time for trade probes.
The economy grew 2% last year and added 116,000 jobs—the weakest readings since 2020—leaving investors exposed if high energy costs and fresh tariffs hit an S&P 500 that is still up 6% year to date.
Can the AI investment boom insulate the economy from record energy prices and historic tariffs?
With the Strait of Hormuz closed, how will global supply chains and energy markets adapt to the disruption?
As AI drives market growth, what are the hidden risks to long-term job stability and consumer spending?
U.S.-Iran Conflict Drives 40% Oil Price Surge, Triggers Inflation and Global Energy Crisis
Overview
The U.S.-Iran conflict, triggered by joint U.S.-Israeli strikes and Iran’s retaliation, has led to the effective closure of the Strait of Hormuz. This chokepoint disruption has caused soaring energy costs and deepened uncertainty in global shipping, directly fueling inflation and economic strain for American consumers and key sectors like agriculture and airlines. The resulting price shocks and supply disruptions are driving political debate and public discontent in the U.S., while also accelerating a global shift toward renewable energy as nations seek to adapt to ongoing instability and rethink their future energy strategies.