Oil prices will likely stay elevated as the conflict in Iran continues to disrupt global energy supplies, experts warn. The war has paralyzed tanker traffic through the Strait of Hormuz, a critical waterway that typically handles 20 percent of the world's oil and much of its natural gas. With prices already up one-third since the conflict began, U.S. gasoline now averages $3.50 per gallon, the highest level since 2024.

Trump administration officials are exploring options to ease price pressures, including releasing oil from the Strategic Petroleum Reserve and suspending federal gasoline taxes. However, analysts say these measures would have limited impact while the strait remains closed. The reserve holds about 415 million barrels, but that's a fraction of the 20 million barrels per day that normally flow through Hormuz. Even coordinated releases by G7 nations would only provide temporary relief.

Without a resolution to the conflict, experts say there are few tools to meaningfully reduce prices. The current disruption represents the largest supply shock in market history, according to Commodity Context founder Rory Johnston. While the administration has downplayed the severity, calling any disruptions temporary, the reality is that as long as Iran can threaten shipping through the strait, global oil prices will remain under pressure.