Defense Secretary Pete Hegseth Criticizes European and Asian Nations for Relying on US to Reopen Strait of Hormuz

When Defense Secretary Pete Hegseth stood before cameras this week and accused European and Asian nations of “freeriding” on U.S. Efforts to secure the Strait of Hormuz, the rhetoric felt distant—another salvo in an ongoing geopolitical tussle over oil shipping lanes thousands of miles away. But for anyone watching the fuel prices creep up at the pump near Denver’s RiNo Art District or feeling the pinch when filling up a truck for a weekend trip into the Rockies, the connection is anything but abstract. The Strait of Hormuz isn’t just a dot on a map near Iran; it’s the chokepoint through which roughly 20% of the world’s oil supply flows and any disruption sends ripples straight to Colorado’s front range.

Hegseth’s pointed remarks—echoed across outlets from Bloomberg to CNN and The Independent—centered on frustration that allies benefit from U.S.-led maritime security without contributing proportionally to the cost or risk. He specifically named European and Asian countries as enjoying the stability of open shipping lanes while relying on American naval power to maintain it. The context is a volatile one: recent tensions in the Gulf, including seizures of vessels and threats to close the strait, have kept U.S. Central Command on heightened alert. What Hegseth framed as a burden-sharing issue isn’t merely diplomatic theater; it has tangible downstream effects on energy markets that touch every corner of the U.S., including landlocked states like Colorado where energy costs influence everything from household budgets to industrial operations.

Consider the second-order effects. When shipping through Hormuz faces delays or increased insurance premiums due to perceived risk, those costs don’t vanish—they get baked into the price of crude oil. Refineries in the Midwest, many of which process Brent crude or other internationally traded blends, pass those expenses along. In Colorado, where industries ranging from craft brewing in Fort Collins to data center operations in Aurora depend on stable energy inputs, even modest fluctuations in fuel or electricity prices can alter business planning. Add to that the psychological impact at the consumer level: when drivers observe gas prices tick upward near Colfax Avenue or along I-25, it influences spending habits, travel decisions, and broader consumer confidence—factors that ripple through local economies.

This isn’t hypothetical. Historical precedents demonstrate how Gulf instability translates to domestic pressure. During past periods of strait-related tensions—such as in 2019 following drone attacks on Saudi oil facilities—national gasoline averages rose sharply, with Mountain West states often experiencing above-average increases due to logistical constraints in fuel distribution. More recently, the U.S. Energy Information Administration has noted that West Texas Intermediate (WTI) crude prices, while domestically focused, remain correlated with global benchmarks like Brent, meaning Colorado’s energy costs aren’t immune to overseas shocks. The state’s unique geography amplifies this: reliant on pipelines crossing multiple jurisdictions and lacking direct access to deepwater ports, Colorado’s energy supply chain has fewer buffers against external volatility.

To ground this further, consider the institutions actively monitoring these dynamics. U.S. Central Command (CENTCOM), headquartered at MacDill Air Force Base in Florida but with forward elements regularly engaging in Gulf operations, bears the operational brunt of maintaining open waterways. Domestically, the Energy Information Administration (EIA), part of the Department of Energy, provides the data streams that analysts and policymakers use to assess how international events affect domestic markets. Meanwhile, organizations like the Colorado Energy Office—tasked with advancing the state’s energy policy and resilience—constantly model scenarios where external shocks could impact grid reliability or fuel availability. These entities aren’t just abstract players; they represent the infrastructure through which global events like those in the Strait of Hormuz get translated into local preparedness and response.

Given my background in analyzing how macro-level forces reshape community-level realities, if this trend of great power burden-sharing disputes begins to strain global energy flows—and by extension, Colorado’s energy cost stability—here are the three types of local professionals you’d want to consult:

• Energy Cost Analysts for Small and Mid-Sized Businesses: Look for professionals who combine utility bill auditing with forward-looking risk modeling. The best don’t just review past kilowatt-hour usage—they assess exposure to commodity price swings, understand demand-response programs offered by Xcel Energy or Holy Cross Energy, and can help draft contingency plans for scenarios where electricity or natural gas prices spike due to external shocks. Verify they have experience with Colorado-specific tariffs and have worked with businesses in sectors like hospitality, manufacturing, or tech—industries where energy volatility hits hardest.
• Sustainability and Resilience Planners with Municipal Experience: Seek experts familiar with Colorado’s local government landscape, particularly those who’ve collaborated with city sustainability offices in Denver, Boulder, or Colorado Springs. They should understand how to integrate energy security into broader climate action plans, know the nuances of state-level grants (like those from the Colorado Department of Local Affairs’ Energy Impact Assistance program), and can help businesses or neighborhoods evaluate microgrid feasibility or on-site renewable options as hedges against centralized grid vulnerability.
• Commodity Risk Advisors Specializing in Western U.S. Markets: These advisors focus on helping businesses lock in energy costs through instruments like futures contracts or fixed-rate supply agreements, but with a nuanced grasp of regional dynamics. In Colorado’s case, that means understanding how WTI pricing at Cushing, Oklahoma, interacts with local basis differentials, how mountain weather patterns affect seasonal demand, and how transcontinental pipeline constraints (such as those on the Rockies Express or Kern River lines) can create localized price pockets. Prioritize advisors who transparently show their methodology and avoid those pushing one-size-fits-all solutions.

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