COLUMBUS, Ohio — The ongoing conflict in the Middle East, sparked by the major clash between Israel and Hamas in Gaza, has raised concerns about the potential for increased gas prices in the United States. Oil prices have already shown signs of a surge in response to the conflict, and experts suggest that the extent and duration of the conflict will play a crucial role in determining the impact on gas prices.
Paige Lambermont, an energy expert at the Competitive Enterprise Institute, emphasized that the uncertainty surrounding the conflict can, in itself, drive up gas prices. Increasing the oil supply, however, could help mitigate any price effects resulting from the conflict, which would be beneficial for American consumers grappling with high gas prices.
Gas prices in the United States spiked during the summer of 2022, reaching a national average of $5 per gallon, partly due to the Russian invasion of Ukraine. In response to the rising prices, President Joe Biden released millions of barrels of oil from the Strategic Petroleum Reserve, a move that drew criticism from those concerned about national security vulnerabilities.
Now, with a potential conflict in the Middle East and increased volatility in oil supplies, those concerns have resurfaced. Peter St. Onge, an economist at the Heritage Foundation, and others have raised questions about how high oil prices could go and whether the U.S. is adequately prepared to address potential global shocks.
Critics argue that various policies, including reducing the oil supply and limiting lease sales in oil and gas-rich areas, have left the U.S. ill-prepared for energy-related challenges. The ongoing conflict in the Middle East has further highlighted the need for a robust and resilient energy strategy.
Historically, tensions in the Middle East have caused market volatility, and experts suggest that this situation is unlikely to be different, especially if Israel takes direct action against Iran. The Iranian regime’s perceived strength and alliances with China and Russia add complexity to the situation and may contribute to higher oil prices.
The national average price for a gallon of regular gasoline currently stands at $3.66, according to AAA. The impact on gas prices will largely depend on the duration of the conflict and the involvement of world powers, making it a situation to closely monitor for consumers and policymakers alike.