Has fear over Iran being attacked by the USA and/or Israel been a factor in rising gas prices in recently?

Question

Or does the Iran situation have nothing to do with the massive gas price increase in the last couple of years?

Many people think that such an attack against Iran will happen soon. Then again, they may be wrong. In any case, no one doubts that such an attack would have a huge effect on the oil industry.

So is this part of the reason we are paying so much more at the pumps?

Answer 1

I think so, partly. If folks get jittery about the flow of oil, they make or propose actions that could effect the barrel price and thus the retail prices down the line. Everyone thinks about the supply and demand situation which indeed effects prices of everything. If demand is up but supply is disrupted in any manner, even by tropical storms, then the price will change in a hurry. The speculators and the media play a part as they kind of influence the price-setting agencies with their talk about supply and demand.

Answer 2

I would say greed is the reason we see rising gas prices. It seems that most of the countries raise the gas prices when someone blinks at them funny, they jsut use poor excuses so they get more money. Also alot of places that we get oil from hate us(such as venezuela, and other middle eastern countries). Also its the limited number of refineries in the us, the fact that we havent built more in a long time, and also the greed of the oil companies here

Answer 3

Demand push inflation has hiked the price of gasoline.  The demand from the once stagnant economy of China has been a price driver for the last five years.  America, under its regulatory scheme, only is able to produce one half of the oil it consumes.  The case for drilling in new areas offshore and inland is not possible in the present Green dominance of the political debate.  If you  wanted to point a single causative factor to increased energy costs look no further than to an environmentalist.  You know the same old details of congress prohibiting (not allowing legislative authority) for a new refinery since 1978!  Iran.  That must be on  U.S TV news outlets.   It impossible to answer a question about an event that has not occurred.  So, that part of your question would depend on the facts, i.e. how massive or surgical an attack on Iran might be.

Answer 4

Yes, nervousness over the mideast has contributed to higher gas prices. Iran has repeatedly threaten to withhold supplies if attacked.

While supply has remained more or less the same over the last few years, China and India have a HUGE demand for oil, hence one reason the price of oil is up.

Another reason is the decline of the US dollar. You are seeing the rise in all commodity prices due to the falling dollar. Oil hasn't gone up as much if it is priced in euros.

Also the demand is for light sweet crude. The Saudis mostly produce sour crude, so even if they produce more, they will not be adding to the supply of the more desirable sweet crude.

Answer 5

Yes, in addition to the fact that the dollar is losing value due to printing too many dollars to fund Bush's idiot wars.

Answer 6

It may have a small impact, but to date the biggest reason for the high prices are the Futures Market, which basically dictates oil prices.

Of course, if the US and/or Israel were to attack Iran, prices would increase exponentially.  (Which may be the only reason they haven't)