$5 gas prices? Drivers could pay more if Israel And Hamas war widens to threaten oil supplies
When things get unsettled in the Middle East, it can affect the amount of oil available, and that can lead to higher gasoline prices in the United States.
Recently, there has been violence in Israel and Gaza. This happened because Hamas, a group of militants, attacked Israel. As a result, oil prices went up. But experts think that unless this situation gets much worse, it won't have a long-lasting impact on gas prices.
Actually, gas prices in the U.S. are going down right now.
"For the next month or so, people will notice that gas prices are getting cheaper," said Tom Kloza, an expert in energy analysis. "But in the long run, we should be concerned."
Israel and Gaza don't produce much oil themselves. But the problem is that this conflict is happening in an area where a lot of oil is produced. Saudi Arabia, which is nearby, is one of the world's biggest oil exporters.
"It's a situation that's still developing," said Patrick De Haan, who keeps track of gas prices.
Gas prices are unlikely to go up unless the fighting spreads to other countries that produce a lot of oil, like it has happened in the past.
The price of U.S. crude oil, which is used to make gasoline, went up on Monday. U.S. oil went up by 4.1% to $86.10, and the international standard, Brent crude, went up by 3.9% to $87.93 per barrel. Meanwhile, U.S. stocks were uncertain.
So, why are gas prices going down?
On average, a gallon of regular gas in the U.S. costs $3.70, according to AAA, a motor vehicle club. Gas prices have gone down compared to last week, last month, and last year.
Usually, gas prices drop during the autumn season after the summer travel season ends.
"There are a lot of factors at play," Kloza said. "But you can count on the fact that gas prices will keep going down until at least Halloween."
Gas prices reached an all-time high of $5.02 on June 14, 2022, when Russia invaded Ukraine.
The Israel-Hamas conflict might stop the usual drop in prices during this season, Kloza said. But experts don't expect gas prices to go up significantly as long as the conflict doesn't threaten the world's oil supply.
Saudi Arabia has suggested that it might increase oil production early next year if prices stay high, as part of a deal with the U.S.
However, Iran is a big unknown in this situation. It's a major oil producer and supports Hamas. The recent attack on Israel happened around the 50th anniversary of a historic oil shortage, where members of OPEC (a group of oil-exporting countries) stopped selling oil to the U.S. due to its support for Israel. Gas became scarce, prices skyrocketed, and people had to wait in long lines for gas.
Israel and Iran have a history of tensions, and this conflict could make things worse. If it does, it might disrupt the flow of oil from Iran and, in turn, affect oil and gas prices in the U.S.
"That's the big concern in the future," Kloza said. Please Share This News Thank you
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