US and Iran energy disruptions lift prices and raise escalation risks
US gas prices hit record highs as Iran doubled fuel prices for usage over quota. Tehran announced a new Strait of Hormuz exclusion zone amid mine-clearance and fluctuating traffic. ISW said Iran hasn’t met key conflict objectives.
US gas prices hit record highs, while Iran doubled the price of fuel consumed over quota, as energy disruptions hit consumers in both countries. Tehran announced a new “ exclusion zone ” in the Strait of Hormuz amid reports that its grip on the key waterway and its negotiating leverage is weakening. The US has quietly worked to clear mines for months, and traffic last week approached pre-war levels before sharply falling again after new strikes. ISW analysts wrote that Iran feels it has “not yet achieved its key objectives in the conflict,” raising the likelihood of escalation.
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