As tensions involving Iran continue, oil markets are reacting, and that could affect Arizona drivers.
Oil prices have spiked as investors respond to uncertainty in the Middle East. Because oil is traded globally, even the possibility of a supply disruption can drive prices higher and rattle financial markets.
Much of the world’s oil moves through key shipping routes near Iran. When instability threatens those routes, traders anticipate tighter supply and, as a result, prices climb.
ABC15 Mornings Anchor Kaley O'Kelley spoke with Shirvin Zeinalzadeh, an Arizona State University professor who specializes in the Middle East and global oil markets.
“When oil prices rise, it doesn’t just impact what you pay at the pump,” Professor Zeinalzadeh explained. “Higher fuel costs increase transportation and shipping expenses — and that can push up prices on everyday goods.”
Arizona imports nearly all of its gasoline, making the state particularly sensitive to changes in global oil prices.
That means if crude oil remains elevated, drivers here could see increases at gas stations within days.
Zeinalzadeh also says that, over time, higher fuel costs can influence grocery prices and the cost of goods that rely on shipping.
