Most drivers have noticed significantly higher gas prices in recent days, due in large part to the effects of the U-S and Israeli war in Iran.
Brynna Knapp with Triple-A Minnesota says oil tanker traffic is for the most part at a standstill at the Strait of Hormuz, a major shipping connection for…
“The Persian Gulf to open waters which are used for shipping and trading routes. So we’re seeing this ripple effect happen around the world. It’s an ongoing situation that we continue to monitor, but we know that Americans are feeling those short-term impacts at the pump.”
St. Cloud State University Economist King Banaian says the price of oil and natural gas, at least in the short run, will reflect the continued closure of the Strait of Hormuz, or a partial opening allowing safer passage through the waterway…
“If the United States was able to somehow provide insurance, or perhaps escort ships through the straits and establish that they have control of the straits, that price would back back down over the next month or so.”
Banaian says if the strait stays closed for another two to three weeks, “four-dollar gas is not out of the question” in a matter of weeks.
Triple-A’s current statewide average for a gallon of regular unleaded is $3.25, while Wright County’s average is $3.32, and the average Twin Cities price is $3.33. Those prices are up more than 60 cents per gallon from a month ago, though they are up only about 25 cents a gallon from a year ago.
Agriculture groups and farmers also have concerns about important ingredients for fertilizer that move through the Strait of Hormuz and how that may affect already high input costs.
(content: in part, courtesy MNN)
