Iran Conflict Sends US Gas Prices Soaring Amid Global Oil Supply Concerns
The recent escalation of hostilities between the US and Iran has caused significant fluctuations in global oil prices, leading to an increase in gas prices across the country. According to AAA Oregon/Idaho's public affairs director, Marie Dodds, 'volatility is the name of the game' when it comes to oil and pump prices, which could rise again depending on developments in the conflict.
Crude oil prices dropped this week after a pause in hostilities between the US and Iran, but markets remain concerned about tightening global oil supplies due to the conflict in the Middle East. The national average for regular gasoline rose eight cents to $4.10 a gallon for the week, while the Oregon average gained seven cents to $4.64 a gallon.
The Strait of Hormuz, which is the narrow passageway of the Persian Gulf and is bordered by Iran, remains a major concern for oil supplies. With shipping traffic well below pre-conflict levels, any disruption in the straight can impact global oil supplies and send crude oil prices higher.