Could the war between Israel and Hamas impact gas prices?
Professor Massa said gas prices would change if the war starts to impact other countries.
RICHMOND, Va. (WWBT) - Gas prices in Richmond have reached their lowest level in three months, but the downward trend could stall soon.
“The future price movements really depend on how this conflict is handled,” Virginia Tech Professor Olga Massa said.
Gas prices in Richmond, the Commonwealth and across the nation are declining, but could the Israel-Hamas war bring that to a stop?
“In the past, we have seen both strong and moderate price reactions to conflicts in the Middle East depending on how extensive they were,” Massa said.
Massa said gas prices would change if the war impacted other countries.
“About 20 to 30% of global oil trade goes through the strait of Hormuz,” she said. “And in the past, we have seen disruptions of this trade flow due to political turmoil.”
AAA spokesperson Morgan Dean said people at home shouldn’t worry just yet.
“As long as we don’t see any other Middle Eastern countries join in on this conflict, the impact on gas prices here in the US is likely to be minimal,” Dean said.
Dean said crude oil prices have moved up some just over the concern with this conflict.
He also said two big things affect gas: Weather in the Gulf of Mexico and wars and other conflicts happening.
While there’s no significant impact in the U.S., Dean said you never know what will happen.
“It’s important to note that Israel and Palestine are not big oil producers,” he said. “So that’s also why this effect from the conflict has been very muted so far on gas prices here in the US.”
Dean said they also are seeing lower demand for gas right now because people aren’t traveling as much as they were during the summer.
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