Oregon Gas Nears 5 Dollars a Gallon as War in Iran Pushes Prices Higher

Oregon gas prices climbed by $1 over the past month, with $5 per gallon a looming possibility, as US-Iran tensions play out in the Iranian oilfields.

Oregon Gas Is Now 4^th Highest Nationwide

With the war in Iran now entering its fourth week, gas prices across the US are steadily increasing. The American Automobile Association (AAA) reported that average prices went from $2.98 at the end of February to $3.98 on Tuesday.

In Oregon, it’s even higher, at $4.87, a 33-cent leap from last week- and 96 cents higher than a month ago.

The tumultuous oil industry, under pressure from US-Iranian politics, is the main driver of the increases.

The US Energy Information Administration says that crude oil generally makes up about 47% of the cost of a gallon of gasoline. Refining takes 16%, while distribution and marketing is 20%, and taxes sit at 17%.

And about 20% of the world’s oil and refined products flow through the Strait of Hormuz, the narrow passageway of the Persian Gulf bordered by Iran that has come into the spotlight following President Trump’s attacks on Iran. But uncertainty prevails.

While crude oil prices fell on Monday- largely in response to Donald Trump’s post on social media claiming that the US and Iran engaged in talks to end the war, by yesterday, they had climbed back after Iranian officials dismissed Trump’s claim, saying no talks had taken place, and as concerns rise that the war will not de-escalate soon.

AAA did a full breakdown of gas costs across the US. According to AAA, the national average is $3.98. At $4.87 per gallon, Oregon has the fourth-most-expensive gas market in the US as of Tuesday. Only California ($5.82), Washington ($5.29), and Hawaii, with averages above $5, are worse off.