Iran Tensions Could Mean $5 Gas
Recent posturing has already sent price up 20%
By Kevin Spak, Newser User
Posted Mar 1, 2012 8:57 AM CST
Gas prices over four and five dollars are posted on a Shell station on Olympic Boulevard on February 23, 2012 in Los Angeles, California.   (Getty Images)

(Newser) – Going to war with Iran would be an expensive proposition for America's drivers. Tensions over the country's nuclear ambitions have already pushed crude oil prices up 20% to a record winter high, energy experts tell the New York Times. That's translated to an average $3.73 per gallon at pumps nationwide, with prices well over $4 in California. Summer usually pushes prices around 20 cents higher, but tensions with Iran could tack on an extra 50 cents or more.

"If we get some kind of explosion—like an Israeli attack or some local Iranian revolutionary guard … attacks a tanker—then we’d see oil prices push up 20% to 25%," one energy researcher says. That could cut into US purchasing power; one economist says that if gas prices rose a full dollar, it would suck $100 billion out of the economy. The bright side: If tensions ease, crude could fall as low as $80 a barrel. "It's a bind for Obama," says another market watcher. "How do you get tough on Iran without getting tough on American wallets?"

Next on Newser: Andrew Breitbart Dead at 43
More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Iran Tensions Could Mean $5 Gas is...
62%
5%
6%
17%
0%
9%
Show results without voting
You Might Like
Comments
Showing 3 of 110 comments
America_Firster
Mar 1, 2012 10:09 PM CST
A majority of that pricing is based on speculation. This current price gouging will destroy not only this country, but all of the West. Trading with the Russians for oil and gas is much better than the Middle East. By the way, why is America Israel's proxy in the Middle East? When will we ever learn to stop meddling in that part of the world?
ppacimr9ball
Mar 1, 2012 1:40 PM CST
yup its all corporate greed, keeping us thinking we should be involved with foreign affairs, they buy the elections and keep us bickering, they stuff the government with just the right amount of opposition so nothing gets done and the corporations get rich - while our young people die for greedy people - WAKE UP VOTE FOR RON PAUL
MattHelm
Mar 1, 2012 12:57 PM CST
Although this isn't directly related it is when you consider the real reason behind all the "Iran has ICBM's...we gotta kill'em" bullshit....GREED! If Iran had or does roll over and subjugated themselves to the bullshit UN then they could have all the nukes they wanted. Here's an excerpt from my previous link. > Despite the claim by many in the U.S. health policy community that international comparison is not useful because of the uniqueness of the United States, the rankings have figured prominently in many arenas. It is hard to ignore that in 2006, the United States was number 1 in terms of health care spending per capita but ranked 39th for infant mortality, 43rd for adult female mortality, 42nd for adult male mortality, and 36th for life expectancy.3 These facts have fueled a question now being discussed in academic circles, as well as by government and the public: Why do we spend so much to get so little?