closing the Strait of Hormuz; Why could it hurt the American economy? Maybe people told you: closing the Strait of Hormuz will raise the price of oil and the American oil companies will profit, so closing the Strait is in America's interest!! The increase in oil prices can increase the income of some American producers; But that's only part of the story. On the one hand, the high price of oil increases gasoline prices, transportation and the cost of producing goods and puts inflationary pressure on American people and industries. As a result, the profits of the oil companies may come at the expense of consumers. On the other hand, despite the high production of oil, the United States cannot immediately compensate for all the shortages caused by the closure of the strait. Also, some of the refineries in Israel need heavier oil and it is not always easy to replace the oil that suits them. Conclusion: An increase in the price of oil does not necessarily mean that the United States will profit. Some oil companies may be making more money, but high energy prices, disruptions in global trade and pressure on consumers can take a huge toll on the country's economy.
Finally, closing the Strait of Hormuz is harmful to America. A. A.