By The Staff
As war rages in the Middle East and analysts warn about potential threats to shipping through the Strait of Hormuz, many New Jersey drivers are asking a simple question: How much of our gasoline actually comes from oil that passes through that chokepoint?
The answer is surprisingly small.
Very little of the gasoline consumed in the Garden State is made from crude oil that travels through the Strait of Hormuz. In fact, the share is likely only around 1 to 3 percent of the fuel used in New Jersey.
But that doesn’t mean events in the Persian Gulf won’t affect what drivers pay at the pump.
For decades, the United States relied heavily on Middle Eastern oil. That changed dramatically during the last decade thanks to the American energy renaissance that accelerated during the presidency of Donald Trump. Policies promoting domestic drilling, pipeline construction, and energy independence helped turn the United States into the world’s largest oil producer.
As a result, the country imports far less oil from the Persian Gulf than it once did.
Today, the United States imports only about 400,000 to 500,000 barrels per day of crude oil and petroleum products originating in Persian Gulf countries. That accounts for roughly 7 percent of total U.S. crude imports and only about 2 percent of overall petroleum consumption nationwide.
Because New Jersey’s gasoline supply generally reflects national supply patterns, the direct share tied to oil that passes through the Strait of Hormuz is even smaller in practical terms.
Most gasoline sold in New Jersey comes from refineries in the Northeast and Mid-Atlantic—particularly facilities located in New Jersey, Pennsylvania, and Delaware. Those refineries process a mix of crude oil that is far more likely to come from domestic U.S. production, Canada, West Africa, or Latin America than from the Persian Gulf.
Canadian oil alone now represents one of the largest sources of imported crude for American refineries, while domestic production from states like Texas and North Dakota continues to supply large portions of the nation’s energy needs.
This shift has significantly strengthened American energy security.
Even so, the Strait of Hormuz remains one of the most important energy chokepoints in the world. Roughly 20 percent of the global oil supply—around 20 million barrels per day—passes through the narrow waterway each day.
That matters because oil is priced on a global market.
If tensions disrupt shipping through the strait—even temporarily—global crude prices can surge. When the world price of oil rises, gasoline prices in the United States typically follow, even if the physical fuel being refined in places like New Jersey never came anywhere near the Persian Gulf.
The Northeast is also more sensitive to price swings than some other parts of the country. The region has fewer refineries than it did several decades ago and relies more heavily on shipments of refined gasoline from other areas. When global markets tighten, those supply chains become more expensive.
For New Jersey drivers, the takeaway is straightforward.
A conflict affecting shipping in the Strait of Hormuz is unlikely to cause a direct gasoline shortage in the state. The crude oil used to produce fuel here mostly comes from North America and other Atlantic-basin suppliers.
But because oil markets are global, a crisis in the Persian Gulf can still push prices higher across the Garden State.
In other words, while New Jersey’s gasoline doesn’t rely heavily on Hormuz oil, the global energy system means a distant conflict can still show up quickly on the price board at your local gas station.
