President Donald Trump convened a meeting with senior officials in the Situation Room on Friday where he would make a “final determination” on the possible agreement with Iran that could close one chapter of the war.The memorandum of understanding, which as of Friday afternoon had still not been signed off on, would mark the most significant diplomatic breakthrough since the United States and Israel began the war on Feb. 28. But the agreement, as is widely believed, would focus on the Strait of Hormuz, while the subject of Iran’s nuclear program would require additional negotiations.Iran’s effort to shut down shipping through the vital waterway has rippled through the global economy about three months since the war commenced. Prior to the war, roughly 20% of the world’s traded oil typically flowed through the Strait of Hormuz, which runs along Iran’s coast.
Domestically, the effect has been seen most acutely at the gas pump. The national average gas price was $4.39 a gallon as of Friday, according to AAA, which is lower than it was a week ago, when a gallon cost on average $4.55. Two days before the war began, gas cost $2.98 a gallon, however.
It’s unclear what would happen if Trump were not to accept the current proposal. He has repeatedly threatened to restart offensive strikes on Iran, but hasn’t done so. He publicly announced he called off major strikes on Iran earlier this month at the request of multiple Gulf countries that feared Iran would retaliate against them if attacked.
