Trump Eyes Hormuz Reopening as $4.50 Gas Leaves Few Options
Updated
Updated · CNN · May 18
Trump Eyes Hormuz Reopening as $4.50 Gas Leaves Few Options
5 articles · Updated · CNN · May 18
$4.50-a-gallon gasoline has left the Trump administration with one meaningful lever to cut prices: reopening the Strait of Hormuz, after drawing down the U.S. oil reserve, waiving shipping rules and easing some Russia and Venezuela sanctions.
Analysts say other ideas offer little relief or could backfire. A 122-day gas-tax holiday would cost $11.5 billion yet save a weekly 15-gallon driver only $35, while export curbs could briefly lower prices but disrupt refining and spike global oil costs.
U.S. supply is not responding quickly: crude output was 13.7 million barrels per day last week, little changed from 13.8 million at end-2025, and the EIA sees production flat this year at 13.6 million.
Market veterans increasingly see escalation with Iran as more likely than a near-term deal. Rapidan Energy puts the odds at 70% for renewed hostilities within four to six weeks and warns Brent could jump to $150 a barrel.
Beyond gas prices, how is the Hormuz shutdown impacting global food, tech, and medical supplies?
With military conflict looming, what diplomatic path could reopen the world’s most vital oil waterway?
Will this crisis force a permanent shift away from vulnerable global fossil fuel supply chains?
The 2026 Strait of Hormuz Blockade: Unprecedented Oil Disruption and the High Cost of Geopolitical Conflict
Overview
In early 2026, the United States and Israel launched a war against Iran, leading to the effective shutdown of the Strait of Hormuz—a vital global oil transit route. This closure, driven by escalating military conflict, triggered a historic disruption in global oil supplies and caused the biggest oil supply shock in history by late March. As a result, oil prices surged dramatically, plunging global energy markets into crisis and creating immense volatility and uncertainty. The situation marks a critical turning point for international trade and stability, posing profound challenges for countries dependent on the free flow of oil and gas.