WASHINGTON, D.C. – For the first time in years, the national average of gas is slightly over four dollars a gallon. Experts said its due to the conflict in Iran.
“We are seeing the national average at levels we haven’t seen for a couple of years due to the situation continuing to unfold between the US and Iran,” said Patrick De Haan, the head of petroleum analysis at GasBuddy. De Haan said the Strait of Hormuz is one of the world’s most vital waterways when it comes to transporting oil and due to the conflict, it’s essentially blocked because of Iran’s threats to attack ships passing through.
“The Strait of Hormuz on a normal day sees 20-million barrels of oil or a fifth of the world’s total oil coming from countries like Saudi Arabia, Iraq, Kuwait, and Iran,” said De Haan. “So, it’s very impactful for the global oil.”
The blockage doesn’t just impact retail gasoline. Prices for diesel fuel, which are used to power trucks, farm equipment and public transit have also climbed.
On Tuesday the President told US allies who didn’t join the war in Iran but who are also facing fuel shortage to quote “build up some delayed courage, go to the strait, and just take it.” He adds, “the United States won’t be there to help you anymore.”
Prices usually rise around this time of year due to seasonality, but according to De Haan, seasonality contributes to about 15 to 20 percent of the increase we’ve seen in the last month.
“So the bulk of what’s happening is still because of the tensions in the Middle East and even if those tensions do alleviate those prices will not go back down to the pre-war level because that seasonality is gonna prevent that until later this year when the seasonality flips again going the other way when demand starts falling,” said De Haan. “For now, as we get warmer weather, Americans are traveling more and a change over to more expensive summer gasoline and refineries are doing maintenance. All those push gas prices up but that pales in comparison to the impact in the jump in the price of oil due to the Strait of Hormuz closure.”
The White House Press Secretary, Karoline Leavitt, shared this comment regarding gas prices: “When Operation Epic Fury is complete, gas prices will plummet back to the multi-year lows American drivers enjoyed before these short-term disruptions. President Trump remains committed to fully unleashing American energy dominance, lowering costs, and putting more money back in the pockets of hardworking American families.”
