"What you are seeing is emotional reactions and fear that this is a long-term war. This is not a long-term war. This is a temporary movement. The run-up on prices doesn't have anything to do with any shortage of barrels of oil or natural gas. It's just fear and perception, the unknown that this could be some long, drawn-out crisis, but it won't be."
"After the US and Israel launched airstrikes on Iran on February 28, the Islamic Republic moved quickly to shut down the Strait of Hormuz, a narrow waterway critical to the movement of oil around the world. About 20% of the globe's petroleum liquids pass through the Strait. Although there are storage tanks across the Gulf, they are already nearing capacity after a week of conflict and limited shipping options, forcing producers to reduce operations."
"During his media tour on Sunday, Wright said regular ship traffic through the Strait of Hormuz could resume in a few weeks, meaning gas prices could ease sooner rather than later. The US Energy Information Administration says gas prices averaged $2.93 on February 23. By March 2, they were at $3.15. On Sunday, they were $3.40."
US Energy Secretary Chris Wright addressed concerns about rising gas prices following US and Israeli airstrikes on Iran on February 28. Wright emphasized the conflict is temporary rather than a long-term war, attributing price increases to fear and perception rather than actual oil shortages. Iran's closure of the Strait of Hormuz, through which 20% of global petroleum passes, has disrupted shipping and forced major producers like Iraq, Kuwait, and the UAE to reduce output significantly. Gas prices rose from $2.93 on February 23 to $3.40 by Sunday. Wright predicted normal shipping could resume within weeks, allowing prices to decline.
Read at Business Insider
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