Americans could potentially face slight increases in gas prices as tensions between the United States and Iran continue to escalate, according to experts in the oil industry. Andrew Lipow, president of consulting firm Lipow Oil Associates, shared with The Hill on Monday that any potential increases in gasoline prices would likely only be a few cents.
The recent conflict between the US and Iran has caused concern among Americans about how it may affect their daily lives, including the price of gas. However, experts like Lipow believe that the impact on gas prices will be minimal and should not cause alarm.
“I expect that gasoline prices will only see a modest increase, if any at all,” Lipow stated. “The current situation with Iran is not expected to have a significant impact on the global oil market.”
The current tensions between the two countries began when the US killed top Iranian General Qasem Soleimani in a drone strike earlier this month. In response, Iran launched missile attacks on US military bases in Iraq. This back-and-forth has caused concern for many Americans, but Lipow assures that it should not greatly affect the cost of gas.
The price of gas is determined by various factors, including the supply and demand of oil, production levels, and geopolitical events. While the conflict with Iran may cause some fluctuations in the market, it is not expected to have a long-lasting impact on gas prices.
According to Lipow, the US has plenty of oil reserves and production to meet domestic demand. “We are currently producing more oil than we have in decades,” he said. “This means that any disruption in the global oil market due to the situation with Iran can be offset by our own domestic production.”
Furthermore, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, have been working to keep production levels stable. This has helped to stabilize the global oil market and prevent any major price increases.
Additionally, the US has imposed sanctions on Iran’s oil exports, limiting their ability to sell oil on the global market. This has also contributed to the stability of oil prices and lessened the impact of the conflict on the market.
While it is understandable for Americans to be concerned about the potential impact on their wallets, Lipow suggests that they should not worry. “We may see a few cents increase in gas prices, but it will not be significant enough to cause financial strain,” he stated.
In fact, the current average price of gas in the US is $2.58 per gallon, which is lower than this time last year. This is due to the fact that the global oil market has been relatively stable in recent months.
Experts also believe that the US government will take measures to ensure that gas prices remain stable. “The US has the ability to release oil from the Strategic Petroleum Reserve if necessary,” Lipow explained. “This would help to keep gas prices in check and prevent any major increases.”
In conclusion, while the conflict with Iran may cause some concern for Americans, experts in the oil industry believe that the impact on gas prices will be minimal. The US has enough domestic production and reserves to offset any disruptions in the global oil market. Additionally, OPEC and its allies have been working to keep production levels stable. Therefore, Americans can rest assured that any potential increases in gas prices will not have a significant impact on their daily lives.
