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Oil prices are dropping, but Justin Wolfers urges caution before expecting relief at U.S. gas pumps. The Strait of Hormuz is currently open, and the situation is stable under a 10-day ceasefire that has reached its fifth day. Wolfers highlights that despite recent decreases in oil prices, conditions in the region could change quickly, leaving future supply and price trends uncertain.
Wolfers has previously urged a deeper look at war costs, noting in one analysis that lost jobs and indirect effects may add hundreds of billions to the tally. In another recent video discussion, he examined questions around U.S. solvency. These prior comments add context to his caution on volatile energy prices.