Houston gas prices spike nearly 40 cents in one week as conflict disrupts key Middle East oil route
Houston-area drivers are feeling the pump as conflict in the Middle East rattles global oil markets, with local gas prices jumping nearly 40 cents a gallon over the past week, even as oil prices fell slightly on Monday.
According to AAA, the national average for a gallon of gas now sits at $3.53. Houston is below that average at $3.08 per gallon, but that figure still represents a sharp increase from just a week ago.
At the center of concern is the Strait of Hormuz, a narrow waterway between Iran and Oman that connects the Persian Gulf to the ocean. About 20% of the world’s oil supply passes through this route, making any disruption a global economic event.
KHOU 11 energy expert Ed Hirs explained why the Strait is getting so much attention right now.
“Now the problem is all about the strait. We have millions of barrels of oil bottled up because the insurance companies don’t think it’s a very safe thing to get the tankers through. And of course, Iran has threatened to blow up tankers. They’ve attacked tankers in the past.”
Jay Young, CEO of King Operating Corporation, explained how a choke point thousands of miles away directly translates into what drivers pay at the pump.
“20% of all oil goes through this Strait of Hormuz. And why is that affecting us at home? And when I go to get gas at the pump, that’s a great question. But it’s because of the disruptions. And the OPEC countries are starting to cut back a little bit on their own and their countries’ production because they’re like, well, if I can’t get it down this Strait of Hormuz and get paid, why am I going to produce it?”
While oil prices stabilized on Monday, uncertainty over the direction of the conflict continues to loom over the market and leaves open the question of how much more pressure consumers might face at the gas station.
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