What to expect for gas prices in Ohio because of escalating Iranian conflict

The unknown is already sending gas prices higher.
For a second day, demonstrators are outside the U.S. embassy in Baghdad protesting airstrikes.
For a second day, demonstrators are outside the U.S. embassy in Baghdad protesting airstrikes.((Source: CNN))
Updated: Jan. 3, 2020 at 12:58 PM EST
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CLEVELAND, Ohio (WOIO) -The world now waits to see what Iran’s response will be after the United States killed one of its top generals in an overnight attack.

Iran has vowed “harsh retaliation” and that is already impacting crude oil sales, up 4% in the first day of trading after the attack.

The fear in the oil industry is Iran will try to disrupt production or shipping in some way that could send a ripple effect throughout the world, not just the United States.

Gas Buddy petroleum analyst Partick DeHaan told Cleveland 19 that it’s now a waiting game.

“On the surface the optics look bad, but more depends on if Iran retaliates,” DeHaan said while monitoring crude oil prices from Chicago.

With even the small increase in crude oil prices, Northeast Ohio can expect and increase at the pumps.

“Right now just a few cents a gallon but a lot depends on the severity of Iran’s retaliation,” DeHaan said.

Not helping was the year-end report of oil reserves in the U.S.

Inventories in the country were down 11.5 million barrels as oil companies tried to draw down how much extra crude oil they had in stock, to avoid year-end taxes.

When asked for a worst case scenario for our gas prices DeHaan said it’s impossible to say.

“The more oil they cut off the more dramatic the impact could be,” he said.

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