Crude Oil Approaching $100 and US Inflation Rising as Strait of Hormuz Remains Closed

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Crude oil rates are close to $100 per barrel, and inflation in the US has reached its peak in several years as the Strait of Hormuz continues to be mostly shut down amid the ongoing conflict between the US and Iran. Reports from Reuters and CNBC highlight that the global energy crisis, ignited by Iran's strait closure — which accounts for 25% of the world's maritime oil transport and 20% of global LNG shipments — is now significantly contributing to the rise in gas prices and overall consumer costs in America. Officials from the Federal Reserve have indicated the possibility of further interest rate hikes, which could jeopardize the US economy during a crucial period.

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00:00The U.S.-Iran war is now hitting every American's wallet, and economists say the pain is not over.

00:06Oil prices are approaching $100 per barrel, as the Strait of Hormuz remains largely closed

00:12to commercial shipping. The Strait carries 25% of the world's seaborne oil and 20% of global

00:19liquefied natural gas. And Iran's blockade of this narrow waterway has sent energy markets

00:24into crisis. For American families, the result is surging gas prices and the highest inflation

00:31reading in years. Reuters reports the Federal Reserve is now signaling it may raise interest

00:36rates further, a move that would increase costs on mortgages, car loans, and credit cards for every

00:42American household. The global energy crisis created by the Iran war is not just a foreign policy problem.

00:49It is a kitchen table problem, and it is getting worse as negotiations remain deadlocked.

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