In a staggering twist, Americans are wasting $240M a day extra on gas, totaling $8.4B since the Iran War began
Since the Iran war began, fuel prices soared all over the world. Iran’s ironclad control of the Strait of Hormuz has driven prices up. But how much are Americans spending on average for fuel since the war?
According to the Kobeissi Letter, “American drivers have paid an additional $8.4 billion in fuel costs” since February 28th, the start of the Iran War. Breaking the number down, they added that Americans have been paying an extra “$240 million per day on fuel costs” per day.
Needless to say, Americans are footing the bill for this war—a war that not even Donald Trump’s MAGA base voted for. There has been criticism among regular, self-professed MAGA voters, who’ve cussed Trump out for going to war in Iran. Meanwhile, the other portion of the bloc remains supportive, stating that the price would be worth paying for to keep America safe.
But if Americans are already feeling the sting of the price increases, how much longer can they be expected to go up? The answer is unclear, despite administration pundits claiming that this inflation in gas prices is only short-term. Even with the United States having an abundance of natural gas and oil, it will take months to set up new oil rigs for drilling. Therefore, the United States is not invulnerable to shocks in the fuel supply chain.
Drilling for more oil isn’t the only solution
Trump might say that he does not need the Strait of Hormuz as he raves online, demanding that Iran open the strait for everyone’s access. But there are other factors affecting oil prices even if the United States can keep drilling for domestic consumption.
A contributor from Nasdaq explained that there are different types of crude oil, and the one found in the United States is light and sweet. But through the decades, the United States has been importing oil from the Middle East and Russia—countries that produce heavier and less sweet oil. Therefore, the country’s refiners have been geared to export oil that has a significantly different quality compared to what is drilled at home.
Moreover, putting the issue of oil aside, the United States notably imports goods more than it exports. The country also consumes more than it produces, thus making it vulnerable to shocks in the global supply chain even if it is no longer dependent on oil from the Middle East. Machinery, vehicles, gadgets and electronics, and pharmaceuticals remain some of the United States’ top imports.
Simply put, the pain Americans feel will spread to other commodities like cars, medicine, and electronics, to name a few. This is because other key allies—Japan, South Korea, Taiwan, and Vietnam—are more sensitive to tensions in the Middle East. Evidently, they will be struggling with oil prices. Therefore, American consumers will have to pay for the price increases in imports so long as the war goes on.
Is this the highest gas is going to go?
Trump once said a week into the war, “So if we have a little high oil prices for a little while, but as soon as this ends, those prices are going to drop, I believe, lower than even before.”
How long is a little while? Until Trump can force a surrender, and in this case, the situation only appears to be escalating. More than a month into the war, and Trump appears to be unable to end the war. Negotiations, if they exist, are not progressing—and Trump has been repeatedly threatening Iran to submit or have significant infrastructure like bridges and power plants bombed.
Have a tip we should know? [email protected]
