How would bombing Iran affect U.S. gas prices and the cost per gallon?

[Maddie248]

So since we're apparently bombing Iran I personally wonder why that makes me have to pay 4 bucks for a gallon. How is this in any way connected? Bombing Iran coast to coast uses lots of fuel maybe so its supply and demand?

[CupcakeTheDestroyer]

So you know the Strait of Hormuz people keep mentioning? Yeah, that’s the ONLY exit for oil ships from Iran, which is a country whose oil reserves account for roughly 10-12% of all oil in the world. That might seem like a small number, but to put that in perspective, the number of white people in the global population is barely 13%.
Because of this war, it’s now closed to US ships, who try to buy oil from Iran to send to other countries across the globe. Because americans aren’t being allowed in or out, American oil companies are being forced to buy it from other foreign allies, which means they buy it at a higher price per barrel, and that means we have to buy it at a higher price per gallon. Make sense?

[Maddie248]

Yeah it makes sense for the price in all other places like France and stuff, but I guess what I can't wrap my head around is since the US makes enough oil and gas FOR THE US how much should we feel it here. But I guess it's the global price of a barrel that matters

[CupcakeTheDestroyer]

So the US does produce a lot of oil, but they’re 20% of the global demand, meaning a huge portion of the oil we take is sold to foreign nations. Oil is arguably a huge reason why this war is happening in the first place. After taking over Venezuela, the trump administration is clearly making a play to try and make sure all non-NATO ally oil is somehow under their jurisdiction in order to place some kind of vice around our enemies such as Russia or China, who are also our competition. The US is a capitalistic nation and the people in charge of oil are privatized tycoons who only need to follow the law, not directly under government control. It’s the same thing with how the federal reserve isn’t government property but a privately owned equity we often take loans from in order to create more dollars.

[WindAtMyBack]

Iran blocked the Strait of Hormuz which is where a large portion of the world's oil supply goes through. The US doesn't get much oil through there, but much of the rest of the world does.

Oil prices are determined by worldwide supply and demand. The cost of oil is fairly close to the same worldwide. Because the strait is blocked, there is a worldwide shortage of oil. That makes the price of oil go up. It doesn't matter that the US doesn't get much oil through the Strait of Hormuz. When the price goes up, it goes up for everyone, no matter where they get their oil.

Another factor is that the price of oil in the short term is NOT the real price of oil. The market over-reacts to everything. So in the short term we see this over-reaction. In the long term it works out to the "real" price after everyone calms down and stops over reacting. The stock market does the same thing.

[jshm2]

Because contrary to what you are told , you live in a global world - the world doesn't live in the US.

It's the same oil market the world over, so affecting one means all suffer the price shock as adjustments and reserve releases are made by everyone to compensate.

Also, the US uses more oil than it produces - so yes, it IS affected by oil supply and not just price.

Politicians lie about all sorts of things. How badly you will be affected by their poor decisions is a common one.

[Anonymous]

You've said enough that I know if Biden did it, you'd be screaming about how it's very obviously his fault and you'd know why it's his fault. It's funny how you act like you don't understand because you need to find a way it's not Trump's fault. Bahahahaha

[Maddie248]

Well under the Biden regime it was like 8 bucks so I'll take the 4 all day long and the question was why a campaign in Iran does it

[Horsegirly2001]

Supply and demand. If there's a shortage of something then it raises the prices. Ie American oil costs more because Europe, asia and Africa have to pay more so they buy US oil for more. Its like someone wanted to buy something from you for £100 and somebody offered you £200 which offer would you take?

[capriVib]

Us, already makes enough oil for itself but like 30 percent of the worlds oil goes through the strait of hormuz so Iranian blockade would completely disrupt the global supply. This scarcity drives up oil prices worldwide, and the price hikes are even more extreme in countries like Japan and South Korea, which depend directly on that Hormuz route for their energy.

[LiamS95]

The US acuires 80 % of it's oil from domestic productiin and from Canada. Once Iran is wiped out the US will tske over Irans oil production. So gas should come way down in price.

[DryGermanGuy]

Iran is blocking oil/gas ships' travel in the region, can't sell their own products and is destroying oil/gas facilities in surrounding countries. On top of that: The war in Ukraine!

[strateguy632]

It shouldn't but the problem is iran ILLEGALLY INTERFERED with international shipping lane place.

[Ariesman81Nshiiit]

Like others have said, at this point in time, oil is a global commodity.

If you'd like to dig deeper as to why we care, do some research into BRICS and what that could mean for the U. S.

[najekim]

Although the US does not any oil from Iran, the oil market is tied to the global economy, not the national economy. Even I'm a firm believer that we should only be exporting the US oil we don't have have a use for.

[ponderingpaul]

People in crippled infrastructure areas offer significantly higher bids for the fuel so oil companies sell to the highest bidder.

[dougeats]

read the news, and nice response about 8 bucks a gallon LMAO! More like $2.40 a gallon, NOW its 4.35 by me

[jahaims]

20% of the world's oil supply is cut off because the strait is blocked

[Anonymous]

Oh this is funny. It still hasn't gotten over 3 per gallon where I'm from. You must live in a blue state...

[strateguy632]

Bs! Even red states are more than 3$! Oklahoma is cheapest now just 3.44 even less than Texas 3.80. The only "state" with less than $3 cheaper is state of Israel is $2.64 per liter.

[Jeff51]

We get there oil. If they dont have any to sell anyone then prices go up

[ammar12343]

Supply chain disruptions.

[ZameerAnsari91]

I'm not from US, so I can't tell much, 😞