Middle East Conflict Drives Idaho Gas Prices to Record High
Idaho gas prices have been rising for three weeks in a row, driven by escalating conflict in the Middle East that threatens global oil supply routes. The average price of regular gas in Idaho reached $4.23 on Friday, up 18 cents from last week and a steep 75 cents from this time last year, according to AAA Idaho.
This surge has pushed Idaho to 12th place nationally for the most expensive gas, surpassing the U.S. average of $4.10 per gallon. The price increase is attributed to two flashpoints: oil tankers struggling to navigate the Strait of Hormuz and Houthi rebels attempting to block Saudi Arabian oil shipments through the Bab al-Mandab Strait.
Saudi Arabia could reroute shipments through the Mediterranean Sea, but experts say this detour would triple the time it takes for tankers to reach their destinations. The West Texas Intermediate benchmark for crude has risen sharply, trading near $88 per barrel after being around $70 a month ago, adding more uncertainty to the equation.
In the short term, AAA Idaho's public affairs director Matthew Conde said that 'The memorandum of understanding between the United States and Iran that briefly calmed the crude oil market is no longer in effect, which adds more uncertainty to the equation.'