California sues over construction of alleged ICE facility

(The Center Square) – The race for California’s Congressional District 6 is a “priority race” for Democrats. That is according to Dr. Richard Pan, the Democrat who appears headed to the Nov. 3 general election against incumbent Kevin Kiley, I-Rocklin.

The area was known as District 3 until it was redrawn to favor Democrats under Proposition 50.

Speaking at a press conference Tuesday outside the California Democratic Party office in Sacramento, Pan said that, as a doctor, he has devoted his life to protecting the life and safety of the region's families. Now, Pan said, he is running for Congress to improve lives and make government work for people.

“Kevin Kiley chose a different path,” said Pan, who is also an educator, small business owner and former state senator for the Sacramento region. “As a career politician, Kiley first ran for Congress in 2022, taking extreme positions on immigration, voting rights, public health and earned Trump's endorsement as his MAGA champion.”

Pan then said U.S. Rep. Kiley, who was a Republican until earlier this year, voted with President Donald Trump 90% of the time, including backing Trump’s One Big Beautiful Bill Act. Kiley is now an independent who caucuses with Republicans.

“Now his families here in the 6th District struggle with the increasing cost of food, gas above $6 a gallon, and draconian cuts to their healthcare,” said Pan. “These are the results of Kevin Kiley's unquestioning support of Donald Trump's extremist Project 2025 agenda.”

Pan added that “Kevin Kiley is hoping voters forget what he's done to them to pursue his own personal ambitions and Trump's Republican Party,” but Pan is not buying that Kiley is going to be an independent voice.

“The Republican leadership continued to help support and finance his campaign, and the chair of the California Republican Party recently called Kevin Kiley a Republican at his core,” said Pan. “He will say whatever he needs to keep himself in office.”

With 24 days remaining in the vote count, Kiley is leading the race with 46,942 votes or 24.3% of the vote.

Pan has 44,839 or 23.2%.

There are five other candidates in the race. Four of them are Democrats who collectively have 32.5% of the vote as of Tuesday. Republican candidate Michael Stansfield has 20.1%. The Center Square’s figures come from the California Secretary of State’s website.

On June 10, the District 6 race was added to the Democratic Congressional Campaign Committee’s Red to Blue program.

“CA-06 is one of the top chances to flip a House seat and take back the majority,” said Pan in an X post on June 10. “I’m running to defeat Kevin Kiley and deliver for the families of this district.”

Republicans currently have a razor-thin majority in the House, and Democrats could take control by flipping a few seats in the November midterm election.

The Center Square asked Kiley for a comment and did not hear back by publication time.

In May, Kiley told The Center Square that he too was running to deliver for families in this district.

Like other politicians and voters, Kiley wants something done about the affordability crisis.

“We lead the nation in highest gas prices, highest electricity prices, with water and housing and groceries, and much of that is because of overreaching state policies, which are not well adapted to what will make things affordable in our state,” Kiley told The Center Square in May.

The average in California for a gallon of regular gas was $5.71 on Tuesday. That's according to AAA, which has the national average at $4.04. While California has the highest price in the nation, the rates show a decrease from previous weeks during the U.S.-Israeli conflict with Iran. Trump recently announced the U.S. and Iran would sign a peace deal Friday to end the conflict and reopen the Strait of Hormuz to ships.

(The Center Square) - The U.S. Department of Justice has been investigating people close to California Gov. Gavin Newsom over the past year for reasons that have not been fully disclosed, according to information obtained by The Center Square.

Newsom alleged that President Donald Trump had weaponized the DOJ to investigate him in an effort to thwart a potential 2028 presidential campaign. The Center Square found multiple investigations into people close to Newsom.

For this story, The Center Square contacted the U.S. Department of Justice and the White House, which referred all questions to the DOJ.

A source familiar with the investigations told The Center Square that the DOJ had several ongoing investigations related to Newsom. The source, who declined to give a name for publication, added that the investigations had started in 2025 and have been underway for roughly a year. The Center Square decided to use the anonymous source's information because Newsom already said an investigation was happening and because there was no other way to independently confirm it.

“They're being run through [the] U.S. Attorney's Office in the Eastern District of California, and they were triggered by local sources and whistleblowers in California,” the source said of the investigations.

“Not by the President, not by the main justice in D.C.," the source said, answering The Center Square's questions by email.

The source added that one of the investigations is related to the nonprofit “tax activities” of Jennifer Siebel Newsom, Newsom's wife. Another investigation is related to a former chief of staff for the governor and potentially some current staffers.

Siebel Newsom’s feminism-focused nonprofit work has previously been the subject of scrutiny by opponents, who have alleged Newsom has illegally used his office to support the work.

A report by the Sacramento Bee found the governor had solicited $4.8 million in donations since 2020 for the California Partners Project, of which Siebel Newsom is an unpaid co-founder. Reportedly $1.8 million came from a Native American tribe that runs a Sonoma County casino, which has lobbied for legislation in the past. California officials are required by law to disclose donations made to organizations at their request.

On Tuesday, Newsom posted on the social media site X a Freedom of Information Act request for any documents mentioning his name or Siebel Newsom since Jan. 20, 2025 - Trump's Inauguration Day - within the DOJ. The request is in the form of a letter that David Sapp, Newsom's legal affairs secretary, wrote to the Office of the Attorney General's FOIA Request Center in Washington, D.C.

"Trump’s DOJ is on a fishing expedition for a crime that doesn’t exist," Newsom posted, noting his office was demanding all communication, including emails, texts, memos and Signal messages that refer to him or his wife.

Newsom initially discussed being investigated during a video posted to his X social media account Monday afternoon.

“In recent days, federal agents have knocked on the doors of family friends and former employees,” Newsom said. “Not because they found a crime – because they’re simply trying to find one.”

Newsom noted how Trump had called for his arrest last year.

“You can subpoena my records, you can investigate me, you can harass me, put my name on every and any enemies list you have,” said Newsom. “But leave my wife and family out of your personal vendetta.”

(The Center Square) – Letting patients see hospital prices can help, but it will not fix the high cost of health care by itself. That's what witnesses told members of the House Energy and Commerce Subcommittee on Health at a hearing on health care price transparency.

The recent hearing came as the Trump administration pushes hospitals to follow federal price transparency rules. The administration recently warned more than 500 hospitals that they must post clearer price information or risk fines.

The rules require hospitals to post prices online so patients, employers and insurers can see what care may cost before a bill comes.

However, several witnesses told lawmakers that price transparency alone will not bring down costs.

“Transparency is necessary, but it is not sufficient,” Shawn Gremminger, president and CEO of the National Alliance of Healthcare Purchaser Coalitions, told lawmakers.

Gremminger said Congress should also look at site-neutral payments, facility fees, and contract terms that make it harder for patients and employers to find cheaper care.

Christopher Whaley, an associate professor at Brown University’s School of Public Health, said large hospital systems have gained more power through mergers.

“Over the last two decades, roughly 2,000 hospital mergers have produced massive health system conglomerates, increasing prices with no quality improvement,” Whaley said.

He also claimed some cancer patients at hospitals in the federal 340B drug program can face drug markups near 700%.

Sophia Tripoli, senior director of health policy at Families USA, said hospital consolidation has cost Americans money.

“Over the last 25 years, unchecked hospital consolidation has driven up prices by over 220%, costing hardworking Americans nearly a trillion dollars in lost wages since 2012,” Tripoli said.

The hearing also brought attention to nonprofit hospitals. Critics say some large nonprofit hospital systems receive tax benefits while charging high prices, paying executives large salaries, and using their size to dominate local markets.

Consumer Action for a Strong Economy Chairman Gerard Scimeca said lawmakers should not stop with price transparency.

“When five experts from different sides of the country start singing the same song in Washington, it’s clear that something needs to be done to save our healthcare system,” Scimeca said. “They’re right - transparency isn’t enough and that’s why we’ve been working to bring legislation demanding reform to the state level. I hope Congress sees the need to pop open the hood on these ‘nonprofits’ and finds a way to bring true relief to taxpayers at the federal level.”

The Center Square previously reported that some taxpayer advocates also support the Trump administration’s push to get more claims data in federal employee health plans.

Trent England, executive director of Save Our States, told The Center Square in April that hospitals and other providers benefit when patients and taxpayers cannot easily see prices.

“Hospitals and other medical providers set their prices, and they benefit from the opacity,” England said. “They benefit from the fact that it’s just hard to see.”

Andrew Bremberg, who served as director of the Domestic Policy Council during Trump’s first term, told The Center Square that claims data can help the government find fraud.

“It’s vital that OPM get this claims data so they can detect fraud and fight back against it,” Bremberg said.

Trump also created the federal Task Force to Eliminate Fraud earlier this year. The White House said the task force will target waste, fraud and abuse in federal programs, including health care.

Hospitals have raised concerns about some price transparency rules. The American Hospital Association says the rules can create more paperwork and may not always help patients know what they will pay.

Still, witnesses told lawmakers that patients need better price information. They also said Congress must look at the power large hospital systems have over prices.

(The Center Square) – The Trump administration announced Tuesday it is moving civil rights and special education programs to other federal agencies in efforts to continue the dismantling of the U.S. Department of Education. 

In partnership with the U.S. Department of Health and Human Services and the U.S. Department of Justice, the Department of Education will shift oversight of special education and rehabilitative services to HHS. The DOJ will assume responsibility for civil rights enforcement, student privacy protection, and related training and advisory services.

The Center Square contacted the Department of Education for comment and was referred to Tuesday’s press release announcing the changes.

“The Trump Administration has been clear: as we scale back federal micromanagement when it hinders success, we are equally committed to bolstering the efficacy of federal oversight where it is essential,” U.S. Secretary of Education Linda McMahon said in a statement. 

The transfers mark another step in the administration’s broader effort to reduce the role of the Department of Education and redistribute some of its responsibilities across the federal government. 

Secretary of HHS Robert F. Kennedy Jr. noted how this move will cut bureaucratic tape and align federal resources to improve education and employment outcomes.

Acting Attorney General Todd Blanche said that, through the partnership, the department will further its commitment to ensuring that every student is treated with dignity and respect and has an equal opportunity to succeed in the classroom.

(The Center Square) – Federal court records made public Tuesday reveal the identities of five individuals in the alleged terror plot to disrupt the Ultimate Fighting Championship event at the White House over the weekend.

The suspects in custody are 19-year-old Tycen Proper from central Ohio; Bryan Omar Roa and Michael Alan Thomas from central California; Daniel Eskridge from Missouri; and Abraham Hermosillo Alvarez from Omaha, Nebraska.

The group was part of a larger Signal chat with at least 23 users across the country discussing plans for the attack, authorities allege.

Their plan, which the FBI said it learned of on June 10, involved using drones with attached explosives to hit buildings near the event, prompting a mass evacuation that would steer crowds toward a group of snipers.

Affidavits filed by federal agents who questioned the suspects noted that the murder plot “appears to have been motivated by their anti-government ideology,” with the conspirators mentioning hating “billionaires” and “capitalist elites.”

Proper, who authorities allege admitted to being a “team leader” in the operation, had singled out specific politicians as targets due to their support of the American Israel Public Affairs Committee (AIPAC).

Five of the politicians he named are Republicans from West Virginia, including U.S. Sens. Shelley Moore Capito and Jim Justice, U.S. Reps. Riley Moore and Carol Miller, and State Delegate Tristan Leavitt.

U.S. Sens. Marsha Blackburn, R-Tenn., and Tom Cotton, R-Ark., were also targeted by the group.

“It is incredibly chilling that this suspect named me as a potential target along with other lawmakers,” Blackburn posted on social media Tuesday. “I will not let maniacs like this one deter me from celebrating or serving this great nation, and I am grateful to law enforcement for keeping us safe.”

All five terror plot suspects could face lifetime imprisonment if convicted.

Eskridge, Roa, Thomas, and Alvarez have been charged with conspiracy to commit murder, the latter additionally being charged with conspiracy to commit an offense against the United States.

Proper is charged with conspiracy to commit an offense against the United States, attempted murder of any officer or employee of the United States, possession of a firearm in furtherance of a crime of violence, and receipt or transfer of a firearm used to commit a felony.

According to the suspects’ cell data and online activity, as well as testimony from Proper, the group began communicating with one another sometime around March via a TikTok group named “Vanguard of the Old,” court records allege.

The “more serious members” of the TikTok group, including all five suspects, later switched to a Signal chat where they allegedly began planning the attack, according to the records.

Based on TikTok and cell data obtained by the FBI’s Domestic Terrorism Targeting Unit, federal officials believe Alvarez to be the alleged ringleader of the group, going by the online username “Shepherd.”

Proper and Thomas each admitted to helping plan the attack when questioned individually by law enforcement, court documents show.

Eskridge’s spouse told law enforcement that he had “told her that he was a recruiter for the group” and had “purchased a large amount of tactical equipment over the past few months,” per court documents.

Roa admitted that he attempted to travel to Washington, D.C., to protest the UFC fight, but denied any involvement in the conspiracy.

Among other evidence, searches by law enforcement discovered ammunition, firearms, and other weaponry in Roa’s vehicle and in the respective residences of Proper, Eskridge, and Thomas.

All suspects are considered innocent until proven guilty.

(The Center Square) – A rural Central Ohio mother apparently reported her son’s actions to local police, leading to the arrest of a 19-year-old man in connection with what federal authorities are calling a terror plot to create chaos at Sunday’s UFC fight on the White House lawn, according to multiple media reports.

Tycen Proper was arrested Wednesday after his mom called the Danville Police Department and the Knox County Sheriff’s Office, raising concerns about her son’s “recent conduct, including firearms purchases and communicating with certain individuals online,” a federal affidavit said.

Proper is charged with conspiracy to commit an offense against the United States; attempted murder of any officer or employee of the United States; possession of a firearm in furtherance of a crime of violence; and receipt or transfer of a firearm used to commit a felony.

He is being held in the Franklin County jail.

According to the law enforcement affidavit, Danville Police and sheriff deputies responded to a disturbance call at a Knox County address around 9:38 p.m. on Wednesday, when Proper’s parents said he had recently met people only and planned “recons” with them over the weekend.

The parents also said Proper used $3,000 of his graduation money to recently buy camping gear, food, ballistic plates, a new shotgun, a rifle, “lots" of ammunition, extra magazines and a plate camera.

According to the government’s affidavit, Proper’s mother said her son had recently started interacting with a group of ex-military and Christian-based people, who only expressed ultra-religious anti-government sentiments – specifically talking about government corruption, handling of the Epstein files, and data centers taking up all the water in communities.

Law enforcement officials said in their affidavit that Proper told them the group planned to stage a demonstration on the north side of the White House and then fly drones with explosive devices to detonate over the north side of the UFC arena.

Proper told law enforcement the plan was to force the crowd and high-value targets to evacuate south, and members of his group would act as snipers and begin shooting people as they evacuated the area.

Knox County deputies took Proper to a local hospital for an emergency admission based on homicidal ideations, and FBI agents arrested Proper in Knox County.

FBI Director Kash Patel said federal officials first learned of the plan last week on Wednesday. The plot involved using drones with attached explosives to hit buildings near the event, prompting a mass evacuation and steering crowds toward a group of snipers. 

Investigators uncovered a Signal chat with at least 23 users discussing plans for the alleged attack. Individuals from multiple states participated in planning the event, FBI officials said. 

Patel said "multiple individuals" were in custody in relation to the foiled attack. Investigators told Fox News five individuals were in custody as of Monday. 

One suspect was taken into custody in Cincinnati, federal officials said. The White House UFC event was set to celebrate America's 250th anniversary. The event occurred on Flag Day as well as President Donald Trump's 80th birthday. 

"We are built to detect, respond to, and bring to justice those who threaten the lives of American citizens – particularly during large gatherings like the historic UFC 250 fight," Patel said on social media. 

(The Center Square) – Protesters outside churches, synagogues and other religious places will have to keep a certain distance from places of worship if the California Legislature passes a new bill.

Assembly Bill 2664, authored by Assemblymember Rebecca Bauer-Kahan, D-San Ramon, would require protesters to stay at least 100 feet away from an entrance or exit of a religious facility and eight feet from people trying to enter such facilities.

After witnesses testified for and against AB 2664, the legislation passed 5-0 during the Senate Public Safety Committee hearing Tuesday, following the testimony by the bill's author and others.

“Frankly, this is our lives every day when we show up to worship in our synagogue,” Bauer-Kahan, who is Jewish, testified before the Senate Public Safety Committee on Tuesday morning. “We have seen here in California that people who are entering their synagogues or mosques, churches and other places of worship, as they enter, they are surrounded. They are yelled at.”

Existing law makes it a crime to intentionally damage religious property, intimidate or threaten those trying to practice their religion and interrupt religious services. But those who advocated for the bill on Tuesday said current laws fail to define acceptable distances between demonstrators and worshippers.

“Assembly Bill 2664 has one simple goal: to ensure that people of all faiths have the freedom to worship without fear,” Robert Trestan, vice president of the Anti-Defamation League’s West Division, testified in support of the bill. “This bill does not ban peaceful political expression and protest. But rather, it is intended to ensure that worshippers can safely exercise their right to pray, while protecting the freedom of speech and assemble.”

However, opponents of the bill testified on Tuesday that public ways and sidewalks, where protesters often gather when assembling outside a place of worship, are protected places by the U.S. Supreme Court. The bill would undermine that legal precedent if it passes, Aubrey Rodriguez, a legislative advocate for ACLU California, testified at the meeting.

“If there is a record of people being harassed or assaulted near their place of worship, the government would need to show that it has attempted to enforce criminal statutes without success,” Rodriguez testified. “This seems to be an issue of enforcement and does not justify violating rights safeguarded by the First Amendment.”

According to previous reporting by The Center Square, such protests have taken place outside places of religious worship in the Golden State. A lawsuit filed in U.S. District Court Southern District of California in November 2025 alleged that protesters thought to be with a feminist organization called Code Pink harassed and intimidated Christian worshippers at The Mission Church in California.

First Liberty Institute, a law firm that represented the church in that case, did not respond to The Center Square's request for comment before publication time Tuesday.

California Gov. Gavin Newsom ordered churches and other religious facilities to close during the height of the COVID-19 pandemic, earning a reprimand from the U.S. Supreme Court, according to previous reporting by The Center Square. Representatives from Newsom’s office did not respond to The Center Square before publication time on Tuesday.

Mizzou diving announced Tuesday it has hired Colin Zeng as its new head coach.

Zeng spent one season as the head coach at Brown, where both the men's and women's teams had their best finishes ever at the Ivy League Championships.

In his time at Tennessee (2023-25), Zeng helped coach Olympian Bryden Hattie to the 2024 SEC Diver of the year award. He also coached at Colorado Mesa and Iowa.

An accomplished diver in his own right, Zeng holds the Tennessee program records in the 3-meter (495.15) and platform (507.15) and is a three-time NCAA National Champion at Ohio State and Tennessee.

“I'm confident Colin will elevate our diving program, strengthen our team culture, and help us chase championships together," Mizzou swimming and diving head coach Andrew Grevers said in a release.

Car insurance rates have continued declining throughout 2026 but remained stagnant last month. The national average rate for full-coverage car insurance held steady at $186 per month through May, according to Insurify data. The national average liability rate was idle as well, remaining at $98.

Average cost of car insurance by state as of June 2026

Insurance rates can vary greatly based on location, which influences factors like exposure to extreme weather, repair costs, traffic congestion, and vehicle crime rates.

Here are the monthly averages for full and liability coverage across the country.

5 states with the highest car insurance rates as of June 2026

Maryland and Rhode Island remain the most expensive locations for car insurance in the nation. Delaware returns to the top five, replacing New York.

5 states with the lowest car insurance rates as of June 2026

New Hampshire retains the top spot for the most affordable car insurance, with rates well below the national averages of $98 per month for liability and $186 for full coverage. All five states remain in the same position as the previous month.

Factors that affect car insurance rates

Car insurance rates can vary significantly among drivers based on many factors that insurers use to estimate risk. Some common rating factors include:

• Driving history: Insurers consider whether a driver has a clean record or infractions such as speeding, driving under the influence (DUI), or causing an accident.

• Age: Driving experience and accident risk closely correlate with age, actuarial data shows.

• Gender: Statistically, women are less likely than men to cause accidents and engage in risky behaviors like aggressive driving.

• Location: Where a policyholder lives and drives affects their exposure to risk factors such as extreme weather, vehicle crime rates, and accident rates.

• Credit history: Data indicates that drivers with better credit are less likely to file car insurance claims than those with poor credit.

• Vehicle make and model: Vehicles that are less expensive or have multiple safety features cost less to insure.

• Vehicle usage: Driving fewer miles per year reduces a vehicle’s exposure to the day-to-day risks of driving.

• Vehicle equipment: Safety features like lane-keeping assist and blind-spot warning can help decrease the risk of accidents.

• Coverage type: Generally, liability-only coverage costs less than full-coverage car insurance.

• Coverage limits: The amount of coverage you buy affects annual premiums. Minimum coverage is typically the cheapest but doesn’t offer enough financial protection for most drivers.

• Deductible: A higher collision and comprehensive coverage deductible (liability coverage has no deductible) reduces rates, as the insurer assumes less risk for the cost of repairs.

How to save on car insurance

Every state except New Hampshire requires drivers to carry a minimum amount of liability coverage. Insurance professionals recommend buying more coverage for greater financial protection in the event of an at-fault accident. And if a driver leases or finances a vehicle, the leasing company or lender will require them to buy full-coverage car insurance.

Drivers can take the following steps to reduce the cost of car insurance:

• Drive safely. Avoid speeding, hard braking, distracted driving, and other risky driving behaviors that could cause a claim.

• Look for discounts. Most insurers offer discounts, such as good student or multi-car discounts, that can help reduce premiums.

• Increase the deductible. A higher collision and comprehensive deductible typically leads to lower rates.

• Adjust coverages. Liability-only coverage is the cheapest insurance available, and minimum coverage is the cheapest liability option. But drivers should be careful and buy enough coverage to adequately protect themselves financially.

• Comparison shop. Drivers should compare rates from multiple companies every time their policy comes up for renewal.

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Methodology

Insurify data scientists analyzed more than 97 million rates from car insurance applications in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. All premium averages reflect the cost of car insurance for drivers between the ages of 20 and 70 with clean driving records and average or better credit.

For most states, full-coverage premium prices represent two-year rolling medians in order to manage extreme market volatility seen over the past few years as insurance companies have sought substantial rate increase approvals and deprioritized writing new policies in the face of rapidly rising costs.

Liability-only premium prices — as well as full-coverage prices in Maine, Massachusetts, Michigan, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, and Vermont — represent one-year rolling medians.

Liability-only premium averages correspond to policies with the following coverage limits:

• Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident

• Property damage limits between $10,000 and $50,000

• No additional coverage

Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:

• Comprehensive coverage with a $1,000 deductible

• Collision coverage with a $1,000 deductible

For full-coverage historical data, please visit Insurify’s Auto Insurance Data Center. Data housed in the Data Center dates back to 2021 and represents the average yearly cost of full coverage for drivers between the ages of 20 and 70 with a clean driving record and average or better credit.

Monthly prices are based on two-year rolling averages in order to manage extreme market volatility seen over the past few years. Insurance companies have sought substantial rate increase approvals and deprioritized writing new policies in the face of rapidly rising costs.

(The Center Square) – Texas oil and natural gas industry leaders are cautiously optimistic about the president’s announced ceasefire deal with Iran. 

President Donald Trump announced he plans to sign a deal with Iranian leaders on Friday, ending more than 100 days of a U.S.-Israel-led conflict that shut down the Strait of Hormuz and resulted in retaliatory attacks against U.S. allies’ oil and gas refineries. 

The conflict caused the Dow Jones, S&P 500 and Nasdaq Composite to all report losses over the last few months. It also caused oil futures to top $120 a barrel, as the least expensive gas at the pump also topped $4 a gallon for the first time in Texas history. In other states, gas and diesel reached record highs but in Texas, home to refineries and record exports, gas prices reached an all-time high.

The conflict had rippling effects in Middle Eastern countries forcing Saudi Arabia, Kuwait, UAE, and Iraq to cut oil production and shut down several refineries critical to the region after they were damaged by Iranian retaliatory fire, The Center Square reported.

By April, the conflict had caused a net loss of up to 14.5 million barrels per day (bpd) of crude oil being transported through the Strait; aluminum, helium and fertilizer shortages were increasing, a jet fuel crisis was expected, and insurance companies were dropping coverage for cargo ships or increased premiums by 50%, The Center Square reported.

“A ceasefire framework and the prospect of a formal agreement with Iran are welcome developments for global energy. The closure triggered the largest supply disruption in the history of the global oil market, with roughly one-fifth of global oil consumption flowing through that strait daily before the conflict,” Ed Longanecker, president of the Texas Independent Producers & Royalty Owners Association (TIPRO) told The Center Square.

“Hundreds of ships remain trapped in the Persian Gulf, Gulf producers need time to restart throttled-back output, sea mines remain in the waterway, and core nuclear issues between Washington and Tehran are unresolved. Full normalization will take months,” he said. 

He also reemphasized that the U.S. has been meeting global oil demand, led by Texas. Texas operators continued to break production records as well as exports of liquified natural gas (LNG), The Center Square reported.

“What this crisis has confirmed is the irreplaceable value of American oil and gas. When the Strait closed, the United States stepped into the supply gap and partially offset what would have otherwise been a far more severe global price shock. No other energy-producing nation can mobilize at the speed or scale of the United States and the Permian Basin in particular,” he said, referring to producers in west Texas and southeast New Mexico. 

“A durable peace agreement is good news, but the lesson of the last several months is unambiguous. Robust domestic production is not an economic preference, it is a national security necessity, and the American oil and gas industry delivered when the world needed it most,” Longanecker said.​​​​​

Texas Oil & Gas Association president Todd Staples agreed, telling The Center Square that “an end to conflict and a successful diplomatic resolution signal a positive outcome for Americans and their allies alike. The oil and natural gas industry hopes for a speedy resolution and a return of predictability, because predictability supports planning. As global markets and shipping logistics adjust to this important step toward peace, Texas operators will continue to do what they do best by utilizing our state’s plentiful resources to deliver the energy that powers our modern way of life.”

Houston-based Andy Lipow with Lipow Oil Associates LLC addressed an obvious result consumers are already seeing at the pump: “The good news for consumers is that the oil market is selling off in anticipation of the reopening,” he told The Center Square. “We should see the national retail price of gasoline drop below $4 this week. That’s still a far cry from where it was prior to the conflict beginning when it was $2.98 at the end of February, but still 50 cents a gallon cheaper than where it was about one month ago.”

Oil futures fell to their lowest level since early March after the news of a ceasefire broke. The West Texas Index, the domestic benchmark, dropped to $80.75 a barrel. The international benchmark, Brent, dropped to $83 a barrel. All three major U.S. indexes also jumped after the news.  

Lipow said there are still issues in the Strait like clearing mines, insurance companies adjusting prices for tankers and cargo ships “to say it is safe” enough to operate and insure them. Companies “need assurance of a safe shipping lane” and “guarantees from the Iranian government and IRGC that vessels will not be impeded, attacked, or seized,” he said.

The Wall Street Journal reported “senior U.S. officials said it could take more than two weeks to resume normal shipping operations in the strategic waterway” and “it could take some time to get the straight up and running.” 

For U.S. domestic oil producers, “higher prices have encouraged some companies to put additional rigs to work, but if prices fall significantly, they may be forced to curtail future spending in the oil patch” in the Permian Basin, Lipow said. 

Rig counts have increased by seven in the U.S. over the past year, according to Baker Hughes as of June 5. Internationally, rig counts are down by 25.

Longanecker also provided a cautionary note adding that “Monday’s price drop is a risk-premium correction, not a restoration of normal supply.”