Despite the president's promises that low fuel prices would be part of the U.S. energy leadership strategy, the sharp rise in prices, according to Bloomberg, poses political risks for him and the Republican Party in the upcoming midterm elections.
In response to this situation, the U.S. administration is working to contain prices. In particular, the country's Treasury Department has eased restrictions on India's purchase of Russian oil to increase supply in the global market.
The main reason for the rise in gasoline prices has been supply disruptions caused by the military conflict in Iran. Asian refiners have faced shortages of key volumes of crude oil that are typically delivered through the Strait of Hormuz. As a result of the blockage of this vital waterway, about 20,000 sailors have been stranded, leading to reduced fuel production.
It is important to note that approximately 20% of the world's oil and up to 30% of liquefied natural gas from Gulf countries, including Iraq, Saudi Arabia, Kuwait, Bahrain, Qatar, and the UAE, pass through the Strait of Hormuz to Asian markets.
Experts warn that blocking this "corridor" could lead to a sharp increase in energy resource prices.
Meanwhile, China has instructed its largest refineries to suspend the export of gasoline and diesel fuel.
