The U.S. Central Command has destroyed Iranian navy vessels near the Strait of Hormuz, which is responsible for the closure of the strait, causing oil prices and production in the New Mexico-Texas oil fields to rise. While New Mexico consumers may expect higher gas prices at the pump, the rising cost of crude oil could boost the state’s coffers through taxes on oil and gas production. In fiscal year 2025, New Mexico produced 745 million barrels of oil with an average price of $70.50 per barrel, resulting in $1.7 billion in severance taxes for New Mexico. A $1 change in the price of oil generally results in a $50 million direct change to gross severance tax and federal mineral leasing revenue for the state's general fund. However, the longer-term revenue impact remains uncertain due to the ongoing conflict. The WTI crude oil price, the main benchmark for North American production, reached $120 per barrel on Monday, the highest level since 2022.