Gas at $4.50 — is the Iran Blockade Making it Worse?

Amid the ongoing conflict involving the United States and Iran, fuel prices have risen sharply across North America. The national average gas price in the U.S. now stands at $4.53 per gallon, marking a record high. In Canada, the average price is $1.98 CAD per litre, or roughly $5.50 per gallon. Since the conflict began at the end of February, average gas prices have increased by about 50%. At the same time, crude oil prices have climbed nearly 80%, reaching around $102 per barrel as of May 15.

Ever since the U.S. Navy began enforcing a blockade on Iranian ports on April 13, the price pressures have worsened. Recently, Donald Trump explained the situation by stating that “we” can’t allow Iran to obtain nuclear weapons, mentioning that Iran’s economy is collapsing, and noting that the blockade’s “power” is “incredible.” He further insisted that Iran wasn’t getting any money from oil and “hoped” there would be a solution soon. He’s also not satisfied with Iran’s proposals to end the war but, in the same breath, said they’re making strides. He concluded that the only two options seemed to be to either “finish them forever” or “make a deal.” The price of gas will drop once the war comes to a conclusion, he insisted. But will it?