World leaders react to US and Iranian blockade of the Strait of Hormuz
World leaders are responding as the United States closes the Strait of Hormuz, Iran makes retail commitments, oil prices rise and market share falls.
Following a promise of a two-week ceasefire between the US, President Donald Trump said the navy would close the Strait of Hormuz, a key waterway that would impact trade and weigh on potential peace talks.
At the beginning of the war, consumers witnessed a rapid increase in gasoline prices, raising the national average and causing grief to motorists across the country.
Find out how the latest news from the Middle East could affect gas prices and public transport near you.
Will the Strait of Hormuz blockade affect oil prices? Strait of Hormuz blockade
Although the United States imports little oil from the Middle East, experts say the oil market is a global market, meaning the closure of the Strait of Hormuz and the continued war in Iran will likely continue to impact oil and gas prices around the world.
“Everyone is competing for the same barrel of oil,” James Cox, managing partner at Harris Financial Group, told USA TODAY. “It doesn’t matter if it’s produced in Texas, or Iran, or Saudi Arabia, or Russia.”
How much does gasoline cost now? gas prices near me
According to AAA, the national average regular gasoline price as of April 13 was $4.125. In Pennsylvania, the average was even higher at $4.151.
Will the Strait of Hormuz blockade affect public transportation in Philadelphia?
Rising gas prices have already made some Philadelphia-area drivers make a conscious choice to take advantage of the city’s public transit system.
Gas station prices may be higher, but Andrew Bush, SEPTA’s chief media relations officer, told USA TODAY the transit agency expects overall fuel costs to stay within budget.
Busch said SEPTA hedges its fuel purchases and locks in prices about six months in advance. He said as of April 13, about 80% of the authorities’ fuel purchases were pegged at pre-conflict prices.
“This rate will gradually decrease every three to six months until June 2027, so this situation will need to continue for a much longer period of time to have a significant impact on the budget,” he said.
As for the busier passenger numbers, Busch said initial information shows a “slight increase” but the data is still being analyzed.
Bush said SEPTA ridership increased by more than 10% when prices rose in 2022.
Contributor: Daniel de Visset USA Today Network
Kaitlyn McCormick is a Philadelphia-based reporter who writes about trends, news and all things city-related for USA TODAY’s Philadelphia Metro Connect team.
