US-Iran Conflict Drives Up Oil Prices, Gasoline Costs for American Drivers
The US-Iran conflict has driven up oil prices and contributed to higher gasoline costs for American drivers. According to the Energy Information Administration, US gasoline inventories fell by 1.9 million barrels last week to 212.1 million barrels, leaving stockpiles nearly 10 million barrels below the five-year average.
Alex Hodes of StoneX said that 'gasoline prices have rallied alongside the massive move higher in crude oil after several tankers were attacked' in the Strait of Hormuz. The Strait is a critical waterway that carries about 20% of daily global oil and gas supplies.
The conflict has strained US fuel supplies further, with refinery outages reported at Marathon Petroleum's Detroit refinery and Delta's Trainer refinery in Pennsylvania.