By Faye Dorman
Elm Staff Writer
As if rent and grocery prices were not high enough to make the average consumer sweat, the recent additional cost to driving to work may very well cause added perspiration. Since the start of the new conflict between the U.S., Israel, and Iran, the once brag-worthy low gas prices have skyrocketed, turning what used to be a $30 bill at the local Royal Farms to a $50 dollar one, and spurring a consideration to hide the car keys.
According to the U.S. Energy Information Administration, gas prices have increased dramatically, with prices as of March 23 reaching an average of $3.96 across America, with a high of $5.20 on the West Coast. In January of this year, those same prices were averaging to be $2.81, over a dollar per gallon cheaper, which equates to roughly $10 to $16 per fueling. Though it might not seem excessive, in an economy where people are taking out payday loans to pay their third Klarna installment, every dollar spent is draining the bank accounts below zero.
What could potentially be even more worrisome is the cost of diesel fuel, which has risen to a country wide average of $5.37 as of March 23, with prices in California reported being $6.87 per gallon. Higher diesel fuel means higher prices for not only the trucks revving their engines at the freshman housing cross walk, but higher prices for semi-trucks. If it costs more to drive goods across the country, be it fresh fruit and vegetables or the new must-have gadget from Amazon, then the prices of those goods being shipped will eventually rise as well; in capitalism, companies must not be asked to carry burdens that can be placed onto the consumer.
The price of oil has been increasing due to the lapse in supply caused by the conflict, leaving people to wonder if they will face an oil crisis in the coming months as people burn through reserves at the same pace as usual. However, the conflict has gone on for a few weeks now, and what is fascinating, but also damning, is the fact that this “anticipated” oil crisis still has not happened.
According to NPR, there are supplies of oil floating on oceans across the globe that have been at sea since before the conflict began. This means that while there are shortages currently, if the conflict were to end in short order, the lapse in supply could be filled quickly instead of growing bigger. It also means that the impact of the nearly complete closing of the Strait of Hormuz has not actually hit Americans yet.
If the attacks continue, leaving the Strait closed, then the shortage would get much worse, and disrupt an already record breaking disruption.
In fact, according to the Wall Street Journal, the Iran War has caused more supply disruption than ever before, including the Gulf War, the Iranian Revolution, the Arab oil embargo, and even the Suez Crisis, which occurred in 1956. Such a strain in supply for a country in perpetual demand may leave citizens lined up at the gas stations in a manner reminiscent to the 1970s, only with sadly not as interesting looking gas guzzlers.
Only time and an orange man with bad social media habits will tell the story of this particular Iran War, and hopefully there will be a resolution to this conflict before using Canola Oil to fill a gas tank becomes the newest TikTok fad.
Photo Caption: Oil prices continue to climb as the United States and Israel conflict with Iran continues.
Photo courtesy of Wikimedia Commons