Oil Prices and the US Economy

May 12, 2026, 18:41
GlobalFinance

Introduction

The US, Israel, and Iran had a fight. Now, Iran stopped ships in a place called the Strait of Hormuz. This makes energy and gas cost more money in the US.

Main Body

Iran stopped ships on February 28. Many ships carry oil through this water. Now, there is less oil. Gas prices in the US are high. In California, gas is very expensive. Prices for many things went up in April 2025. Energy prices went up a lot. Some companies are losing money. For example, Whirlpool made 10% less money because people buy fewer things. President Trump and the Federal Reserve are angry. They do not agree about interest rates. Many people think the water will stay closed for a long time.

Conclusion

The US has high prices and a weak economy because Iran stopped the oil ships.

Learning

πŸ“‰ The 'Change' Pattern

In this text, we see how things move up or down. This is perfect for A2 learners to describe the world.

1. Directional Words

  • Went up β†’ became more expensive (High prices)
  • Less/Fewer β†’ a smaller amount (Less oil / Fewer things)

2. Real-World Examples from the text:

"Energy prices went up a lot." "Whirlpool made 10% less money."

3. Simple Logic Chain Less Oil β†’\rightarrow High Gas Prices β†’\rightarrow Weak Economy

4. Key Vocabulary for your Pocket

  • Expensive: Costs a lot of money.
  • Losing money: Not making a profit.

Vocabulary Learning

fight (v.)
to argue or argue violently
Example:They had a fight over who could go first.
stopped (v.)
to cease moving or functioning
Example:The bus stopped at the corner.
ships (n.)
large boats that travel on water
Example:The ships carried cargo across the ocean.
place (n.)
a particular area or location
Example:This is the place where we met.
called (v.)
named or referred to as
Example:She called the meeting "team building".
strait (n.)
a narrow waterway between two land masses
Example:The strait connects the two seas.
energy (n.)
the power to do work, like electricity
Example:Solar energy powers the house.
cost (v.)
to require payment of money
Example:The repair will cost $200.
money (n.)
currency used for buying goods
Example:He has enough money for the trip.
high (adj.)
at a great height or level
Example:The price is high today.
expensive (adj.)
costing a lot of money
Example:The watch is expensive.
prices (n.)
the amount of money for goods
Example:Prices went up after the storm.
went (v.)
to move from one place to another
Example:She went to the store.
up (adv.)
toward a higher place or level
Example:The price went up.
companies (n.)
businesses that sell goods or services
Example:Many companies offer discounts.