Gasoline Tops $4 as Hormuz Closure Drives 1970s-Style Stagflation Threat
A nine-week closure of the Strait of Hormuz following the February 2026 U.S.-Israel strike on Iran pushed U.S. gasoline past $4/gallon while global oil demand recorded its largest monthly decline in five years. The Federal Reserve holds rates steady as supply-shock inflation collides with demand destruction — a classic stagflationary trap. IMF chief Pierre-Olivier Gourinchas warns the crisis could rival the severity of the 1970s oil shocks.
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