Key facts
- President Trump stated refinery disruptions, not the Strait of Hormuz, are driving gas prices.
- Trump cited Ukrainian strikes on Russian refineries and closures in U.S. "Blue States" as causes.
- The Ukrainian Defense Ministry claimed to have disabled 51% of Russia's oil refining capacity.
- The national average gas price is near $4.50, with diesel averaging $6.53.
- Tom Kloza of Gulf Oil noted crude oil prices from the Persian Gulf have risen to $33 per barrel.
President Donald Trump asserted on Monday that the primary reason for elevated gasoline prices is not the Strait of Hormuz, but rather disruptions affecting oil refineries. He specifically pointed to Ukrainian strikes damaging Russian refineries and closures in U.S. "Blue States," such as California, allegedly due to Democratic policies.
Trump stated on his social platform, Truth Social, that "Record Numbers of Barrels are coming out" of the Strait of Hormuz daily, implying its role in current price surges is minimal. He also noted that Ukrainian military strikes have caused Russia to lose significant diesel refining capacity, contributing to a fuel crisis.
The Ukrainian Defense Ministry claimed responsibility for disabling 51 percent of Russia's oil refining capacity. These attacks have reportedly led to a substantial fuel crisis since the beginning of the year.
Tom Kloza, chief petroleum analyst at Gulf Oil, partially agreed with Trump's assessment regarding the Russia-Ukraine war's impact but highlighted that crude oil prices from the Persian Gulf have surged to $33 per barrel from $1.75 in February. Kloza attributed this increase to "insurance and freight and all the risk premiums," noting that some vessels in the strait have faced attacks, thus attaching a significant risk premium to crude prices.
According to AAA, Iran's closure of the Strait of Hormuz has contributed to gas prices reaching a national average close to $4.50 in recent weeks, compared to last year's average of $3.13. As of Monday, the average U.S. gas price stood at $4.37, with diesel prices averaging $6.53.
U.S. special envoys Steve Witkoff and Jared Kushner have been involved in negotiations to end the four-year war between Russia and Ukraine. These talks reportedly include a multibillion-dollar deal that could benefit Middle Eastern business executives connected to the lead U.S. negotiators.