The increase in gasoline and diesel prices in the U.S. is expected due to disruptions caused by conflicts in the Middle East and damage to oil infrastructure. This situation is particularly influenced by the U.S.-led war against Iran, which will have significant economic consequences.
Disruption in Oil Supply and Its Impact on Prices
Damage to the "East to West" pipeline in Saudi Arabia, which serves as the main route for transporting oil from the eastern fields to the Red Sea export terminals, along with attacks on oil infrastructure, poses a serious threat to oil supply. This 745-mile (approximately 1200 kilometers) pipeline is currently experiencing disruptions that could have widespread effects on gasoline and diesel prices in the United States.
Read more: Implementation of Fueling Restrictions in Minab to Combat Fuel Smuggling
Chris Wright, the U.S. Secretary of Energy, announced that this pipeline will be operational again in the coming days, but analysts believe that the disruptions will last much longer. The damage to the pumping stations on this pipeline, especially following drone attacks, indicates the need for more extensive repairs that may take several months.
Economic Impacts and Price Forecasts
Market analysts particularly point to the shortage of crude oil and the impact of the wars in the Middle East and Ukraine on refineries. Tom Kloza, senior energy consultant at "Gulf Oil," has predicted that prices will significantly increase in the coming days. He noted that fuel profit margins have not yet adjusted to previous major wholesale jumps.
According to reports, the average price of gasoline on Wednesday reached $4.37 per gallon, ranging from $6.04 in California to $3.75 in Indiana. Meanwhile, the price of diesel reached an average of $6.31 and increased to $8.27 in California. These increases will be particularly noticeable in the central regions of the country.
Disruptions in the global energy market are primarily due to retaliatory actions by Iran and its allied forces in response to U.S. and Israeli attacks against Iran. The conflicts between Saudi Arabia and the Ansar Allah forces have also exacerbated this situation and affected market forecasts.
Currently, American drivers have incurred significant additional costs due to this war and rising prices. Estimates suggest that these costs have reached approximately $107 billion so far. With the elections approaching and the conflicts continuing, the economic outlook is alarmingly deteriorating.
Read more: Europe's Gas Reserves Reach 69% · Oil Price Drop; IEA Forecasts Shake the Market
