Summary

Gas prices could see another jolt this week following the announcement of a new U.S. naval blockade in the Strait of Hormuz that is supposed to begin Monday, an industry analyst said. Oil prices rose sharply Monday after U.S. negotiations with Iran failed to end with an agreement to reopen the Middle East shipping lane that carried about 20% of the world’s oil before the U.S. and Israel began the war. “With a breakdown in talks and renewed escalation over the weekend, motorists should prepare for another round of price increases,” GasBuddy Senior Petroleum Analyst Patrick De Haan said in a statement Monday morning. “The move toward a full blockade of the Strait of Hormuz is compounding global supply concerns and risks further disrupting flows.” As a result, gasoline prices are likely to jump again this week, and diesel will soon follow, he said, “until there is a meaningful restoration of shipping through the Strait.” The national average for a gallon of gasoline on Monday is $4.125, according to AAA — the same as Sunday and less than a penny more than a week earlier. The day before the U.S. and Israel began missile strikes on Iran in late February, the national average was $2.98. Over the last week, the national average price for a gallon of diesel rose 4.1 cents to $5.617, according to GasBuddy. Early Monday, Brent crude oil was trading at $102 per barrel — a 7% increase following President Donald Trump’s announcement of the naval blockade. Over the past year, prices for Brent crude have ranged from $59 to $120. They were about $70 per barrel before the war. De Haan said oil markets are likely to stay highly reactive to happenings in the Persian Gulf, as uncertainty remains high. Iran responded to Trump’s threatened naval blockade of all Iranian ports with threats of its own on all ports in the Persian Gulf and Gulf of Oman. Speaking with Fox News’ Maria Baritromo on "Sunday Morning Futures" over the weekend, Trump said he expects gas prices to be “the same or maybe a little bit higher” through November’s midterm elections. When Baritromo asked if the blockade coupled with the U.S. opening more oil capacity would be enough to lower the price of oil and gas, he said: “It’s going to be. Eventually it’s going to be lower. No, it might not happen initially, but it’s going to go down.”