The war with Iran has resulted in the effective shutdown of the Strait of Hormuz in the Mideast and created one of the most significant disruptions to global oil markets in modern history.
With approximately 20% of the world’s oil normally flowing through this narrow waterway, the closure sent shockwaves through global supply chains, pushing crude oil prices sharply upward.
When the U.S. and Israel first struck Iran, Oil markets responded immediately with Brent crude rising from around $72 per barrel to nearly $120 at its peak.
Analysts estimate that traders added a risk premium of roughly $14 per barrel due to the possible closure of the Strait of Hormuz.
These spikes reflected fears, and those fears were soon realized: that Iranian retaliation or military escalation could halt or restrict maritime flows essential to the global oil supply.
Despite these price increases, the United States has not experienced anything close to the economic turmoil of the 1973 oil embargo.
At that time, crude oil prices quadrupled from about $2.90-$3.00 per barrel, to roughly $11.65-$12.00 per barrel. The U.S. gasoline prices also rose from approximately $.38 per gallon to roughly $.53 per gallon — a 40% increase.
In addition to price increases, the U.S. experienced severe gas shortages, rationing, and long lines at gas stations nationwide.
The main problem was that people often could not buy gas, or in many cases not as much as they needed, for any price due to a limited supply.
By contrast, during the recent Iran conflict, gas was plentiful and oil prices rose far less dramatically in percentage terms.
Brent crude climbed from the low $70s to around $120 at its peak, a significant increase but nowhere near the fourfold surge of 1973.
U.S. gasoline prices also rose but remained well below the inflation‑adjusted spikes of the embargo era, or the more recent price highs experienced during the Biden administration, and the country had no widespread shortages or rationing.
This stability reflects a fundamentally different energy landscape when compared to 1973.
As someone who closely follows the oil industry, I am convinced this current resilience is largely the result of President Donald Trump's aggressive pro-production energy policies.
The administration's emphasis on expanding drilling, reducing regulatory barriers, and encouraging domestic energy independence — policies often known as a "Drill Baby Drill!" approach — have made a difference.
By boosting U.S. output before the crisis, the administration helped insulate American consumers from the full impact of the Strait of Hormuz shutdown. (See: Fact Check: Is Trump's Claim U.S. Imports 'Almost no Oil' via the Strait of Hormuz true?)
West Texas has played an especially crucial role in responding to the president's policies. Last year, U.S. oil companies broke production records, producing 13.6 million barrels per day nationwide.
Almost half of this amount, 6.6 million barrels, came from the Permian Basin, which covers West Texas and parts of Southeastern New Mexico. (More here: Texas Record Oil Production Stabilizing U.S. Supply Amid War | Newsmax.com)
The broader global perspective underscores how critical this domestic buffer has been.
The Federal Reserve Bank of Dallas reported that the closure of the Strait of Hormuz removed nearly a fifth of global oil supplies from the market, a disruption three to five times larger than previous geopolitical oil shocks.
With Persian Gulf producers forced to limit output and Asian refineries struggling to secure crude, global prices surged rapidly.
In this environment, countries heavily dependent on imported oil faced severe economic strain while the U.S. benefited from its expanded production capacity.
Although analysts have acknowledged the positives of domestic production, they have also cautioned that it will take time for prices to fully stabilize after the conflict officially ends and the strait is fully reopened.
However, in a positive sign that prices can fall quickly, crude oil futures went down over 16% the day after President Trump announced a two-week cease-fire.
While we await an official end to the conflict, much of the world is turning to the U.S. to fill the energy need created by the closure of the Strait of Hormuz.
An article of April 13 described a "record armada" of 171 tankers bound for the Gulf of America to purchase oil. This is a significant rise from the 110 tankers that usually purchase oil there in a typical month.
Once the Iran crisis is fully resolved, strong U.S. production, bolstered by Texas shale fields, will help speed up a normalization that will ease pressure on gasoline prices.
For this, we should all thank President Trump for pro-energy policies.
"Drill Baby Drill!"
For more information, please visit www.JoeFromTexas.com.
Joe from Texas is a family man with children, grandchildren, and great grandchildren. He's experienced tremendous success and lived the American Dream. His beliefs are both straightforward and deeply held. He believes in God, his family, and the United States of America. Read more Joe Penland, Sr. Insider articles Click Here Now.
© 2026 Newsmax. All rights reserved.