Skyrocketing energy costs in states like New York and California are being driven more by local policies than global conflict, even as tensions with Iran push oil prices higher, former Energy Secretary Rick Perry insisted Sunday on Newsmax.
"When you go to New York, when you go to California, it's probably $2, at least, a gallon more in each of those states because of these green policies that they put into place," Perry said on Newsmax's "Sunday Agenda."
The former Texas governor added that he paid $3.55 a gallon for gas at a station in La Grange, Texas, but the blue states' laws mean residents there pay much more than he did.
New York, he pointed out, has blocked pipelines that would bring in domestic crude.
"For instance, New York wouldn't allow for crude oil to be piped across out of northern Pennsylvania into New York for refining," he said. "So they're having to use Russian fuel to pay for their gasoline."
He added that California faces similar challenges due to what he called restrictive environmental policies that increase costs for consumers.
The comments come as oil prices climbed near a four-year high amid escalating tensions between the United States and Iran, including threats by Tehran to close the Strait of Hormuz, a key global shipping route.
Perry said the conflict is contributing to higher global prices but is not the sole driver.
"This isn't just because Donald Trump has gone to war with Iran," he said. "Yes, that's driven up energy prices around the world to some degree."
He said that removing Iranian-backed groups from the region could ultimately stabilize energy markets and improve long-term conditions.
"You remove the IRGC, Hamas, Hezbollah out of that region of the world, and not only can the Middle East become a flourishing economy, but a place that can finally live in peace," Perry said.
While Iran has threatened to block the Strait of Hormuz, Perry said he does not believe it has the capability to fully do so.
"My instinct here is that the Iranians cannot fully blockade the Strait of Hormuz. They don't have the ability to," he said.
Still, he warned that any disruption would impact more than just oil.
"This is also a supply chain issue that covers the broad array of other areas," Perry said, noting that key materials used in manufacturing and agriculture pass through the region.
"There's going to be discombobulation, there's going to be pressure on prices," he added. "But at the end of the day, this is going to be good for the Middle East. It's going to be good for the world."
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