Petroleum prices rise as Iran conflict continues

WASHINGTON (Gray DC) - The price of a gallon of gasoline is continuing to rise as there’s no sign the war in Iran will soon come to an end.

Over the weekend, Iran chose a new leader, sending a signal that some see that the country is not looking to come to the negotiating table with the U.S. anytime soon.

As the U.S. and Israel continue to pummel Iran with relentless airstrikes, Iran on Sunday selected 56-year-old Mojtaba Khamenei to succeed his father as Supreme Leader. President Trump said the choice of the younger Khamenei, another hardliner, was unacceptable.

Meanwhile, the price for crude oil now tops $100 a barrel, the highest level in four years.

According to AAA, prices at the pump in the U.S. now average $3.48 for a gallon of regular. That’s 47 cents higher than a week ago.

The President writing on social media, “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace.”

The Energy Department, in the meantime, is considering the release of a significant amount of oil from the Strategic Petroleum Reserve.

But tapping the reserves is just a quick fix. As long as the Strait of Hormuz remains unsafe for oil tankers, the price of oil and gas is expected to rise. Twenty percent of the world’s oil is transported through the Strait. And oil companies right now are reluctant to put their expensive cargo at significant risk.

Monday afternoon, oil prices dropped below $100 per barrel, with military operations continuing.