What’s going on: So much for catching a break at the pump. After a brief dip earlier this month, gas prices are averaging about $4 a gallon due to renewed fighting between the US and Iran (which claimed the lives of three US servicemembers over the weekend). While there are still plenty of crude oil reserves underground, turning that into usable gasoline is a complex process made even more complicated by war. Refineries have been knocked offline, fuel inventories are low, and Iranian control over the Strait of Hormuz continues to hold up global distribution. It doesn’t help that new federal biofuel requirements make gasoline production in the US more expensive. Even if the war ends tomorrow, experts say it’ll take months for the supply chain to get back on track.
A temp check: When fuel prices go up, so does the price of everything else. Your groceries, your diaper order, that must-have cotton sundress –– all of it needs to be shipped around. And, like tariffs, any added cost is typically passed on to the consumer. Gas prices are one of the most visible (and painful) indicators of how the economy’s doing, and right now 67% of American households are feeling the strain. It doesn’t bode well for the White House, either. Research shows that approval ratings tend to fall when gas prices go up, regardless of why it happens –– though in this case, President Donald Trump has played a pretty major role. Despite Trump’s promises of lower gas prices, there’s little control he or anyone else has over the global oil supply chain… with just three months to go until the midterms.
