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Amid the escalating conflict with Iran, President Donald Trump just announced he’s taking new steps to protect the global energy trade. The president says he has ordered financial backing for ships traveling through the Persian Gulf and has ordered the US Navy to escort tankers if necessary. Iran has effectively closed the waterway responsible for transporting 1/5 of the world’s oil, the Strait of Hormuz, by attacking ships and vowing to set fire to any that try to get through. Another reason. The oil prices are going up is because Tehran is also attacking energy facilities in Saudi Arabia and Qatar. Look at this chart from our get the Facts data team. Oil prices are now the highest they’ve been compared to any other point in the last year. The Federal Reserve estimates that every $10 per barrel oil goes up, you pay about 25 cents more at the pump. The United States is the highest crude oil producing nation in the world, but still, that only accounts for about 20% of total production. At the White House, I’m Christopher Sales.
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The average price for a gallon of gasoline in the United States jumped 11 cents overnight Tuesday to about $3.11, according to AAA. It marked the largest one-day spike since Hurricane Katrina in 2005.Iran’s recent attacks on energy facilities in Saudi Arabia and Qatar led to a spike in crude oil prices, which are now the highest compared to any point in the last year. The Federal Reserve estimated that every $10 increase per barrel of oil results in an additional 25 cents at the pump. In addition, Iran effectively closed the Strait of Hormuz, a crucial waterway for transporting a fifth of the world’s oil, and has vowed to set fire to any ships that try to pass through.In response, the U.S. will take new steps to protect global energy trade. President Donald Trump ordered financial backing for ships that travel through the Gulf and said the U.S. Navy could potentially escort tankers through the Strait of Hormuz.The U.S. is the highest crude oil-producing country in the world, but it still only accounts for about one-fifth of the world’s total production. The economy also reacted Tuesday to what the Trump administration is calling a war. Making things uncertain for markets is the wavering timeline of U.S. involvement. Wall Street was rocked by a sell-off of stocks, but the losses eased as the day went on. The Dow Jones Industrial Average and the S&P 500 were down, which caused concern that more damage could happen to the U.S. economy than first feared. And the jump in oil prices worsens inflation, which remains high. Follow our coverage:
The average price for a gallon of gasoline in the United States jumped 11 cents overnight Tuesday to about $3.11, according to AAA. It marked the largest one-day spike since Hurricane Katrina in 2005.
Iran’s recent attacks on energy facilities in Saudi Arabia and Qatar led to a spike in crude oil prices, which are now the highest compared to any point in the last year. The Federal Reserve estimated that every $10 increase per barrel of oil results in an additional 25 cents at the pump.
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In addition, Iran effectively closed the Strait of Hormuz, a crucial waterway for transporting a fifth of the world’s oil, and has vowed to set fire to any ships that try to pass through.
In response, the U.S. will take new steps to protect global energy trade. President Donald Trump ordered financial backing for ships that travel through the Gulf and said the U.S. Navy could potentially escort tankers through the Strait of Hormuz.
The U.S. is the highest crude oil-producing country in the world, but it still only accounts for about one-fifth of the world’s total production.
The economy also reacted Tuesday to what the Trump administration is calling a war. Making things uncertain for markets is the wavering timeline of U.S. involvement. Wall Street was rocked by a sell-off of stocks, but the losses eased as the day went on. The Dow Jones Industrial Average and the S&P 500 were down, which caused concern that more damage could happen to the U.S. economy than first feared. And the jump in oil prices worsens inflation, which remains high.
Follow our coverage:
