US, Iran feel pain from energy disruptions

US gas prices hit record highs and Iran doubled the price of fuel consumed over quota, as energy disruptions hit at the pump 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 diminishing: 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.

Iran feels it has “not yet achieved its key objectives in the conflict,” ISW analysts wrote, increasing the likelihood of escalation. The Gulf’s energy infrastructure is “sprawling, accessible, and exposed,” Iran’s lead negotiator wrote Monday, and “American oil and gas companies… share that exposure.”