00:00Oil hit $96 a barrel this week, and experts warn that what Americans pay at the pump this summer
00:05could break records not seen in more than a decade. The driver is the Iran war, now in its
00:11ninth week. The Strait of Hormuz, through which nearly 20% of the world's oil flows,
00:17has been effectively closed by mutual blockades. The International Energy Agency has called this
00:23the largest energy supply shock on record. A billion barrels of oil production are projected
00:28to be lost because of this conflict. The loss today is already between 600 and 700 million
00:34barrels. The Trump administration extended a temporary waiver on Russian oil sanctions to
00:40ease supply constraints, but Zelensky called it a direct contribution to the war against Ukraine.
00:46For American families at the pump, none of that geopolitical context changes the price.
00:51Average gas prices already hit $4 per gallon in March, a 30% surge driven by the war.
01:00Economists at Goldman Sachs are warning that if the Strait of Hormuz remains closed through
01:05the summer driving season, gas prices could reach $5 or higher in key markets. The Iran
01:11war is thousands of miles away, but it is already in your fuel tank.
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