Fighting in the Middle East has begun disrupting energy exports from the region, and oil markets are responding. The U.S. benchmark, West Texas Intermediate crude, climbed about 6% on Monday to just over $71 a barrel.
For now, the national average for regular gas remains just below $3 a gallon. But prices at the pump usually trail oil by days or even weeks, since stations adjust gradually. Here’s the concern: About 20% of the world’s oil passes through the Strait of Hormuz, a narrow shipping route near Iran. If tensions continue and shipments slow further, drivers could start to feel it just as spring break and summer road trips ramp up.
“About at least 60 percent of the price you pay when you go fill up has to do with the price of crude oil,” Aixa Diaz, a spokeswoman for the AAA motor club, told The New York Times. “If it were to get above $80, or worse, it’ll be more noticeable at the pump.”
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Fighting in the Middle East has begun disrupting energy exports from the region, and oil markets are responding. The U.S. benchmark, West Texas Intermediate crude, climbed about 6% on Monday to just over $71 a barrel.
For now, the national average for regular gas remains just below $3 a gallon. But prices at the pump usually trail oil by days or even weeks, since stations adjust gradually. Here’s the concern: About 20% of the world’s oil passes through the Strait of Hormuz, a narrow shipping route near Iran. If tensions continue and shipments slow further, drivers could start to feel it just as spring break and summer road trips ramp up.
“About at least 60 percent of the price you pay when you go fill up has to do with the price of crude oil,” Aixa Diaz, a spokeswoman for the AAA motor club, told The New York Times. “If it were to get above $80, or worse, it’ll be more noticeable at the pump.”
Sign up for the Entrepreneur Daily newsletter to get the news and resources you need to know today to help you run your business better. Get it in your inbox.
