Gas prices are rising because the U.S. and Israel are at war with Iran, and that conflict is shaking the global oil system. Iran sits next to one of the most important oil routes in the world. When that area becomes unstable, oil production slows down, shipping routes get disrupted, and the price of crude oil shoots up.
Right now, millions of barrels of oil per day are stuck in the Persian Gulf because tankers can’t safely move through the region. With less oil flowing and more uncertainty in the market, crude oil prices have surged; and gas stations are adjusting their prices to match. Some days it feels like the prices are changing daily.
The short of it…
In simple terms: A major war in a major oil region has disrupted supply causing higher oil prices that has resulted in higher gas prices.