America barely uses OPEC oil. Why are oil and gas prices so high?

The United States is the world's starring lipid producer. Of the lipid we bash import, only 8% comes from the Middle East.

Why, then, person home lipid and gasoline prices gone done the roof?

Oil prices spiked again connected July 13 arsenic renewed subject strikes betwixt the United States and Iran reignited concerns implicit vigor shipments done the contested Strait of Hormuz. Brent crude futures, a marketplace benchmark, were up $2.39, oregon astir 3%, to $78.40.

U.S. state prices averaged $3.87 a gallon connected July 13, much than 70 cents higher than a twelvemonth agone connected this date, according to AAA. Gas prices are elevated astatine a infinitesimal erstwhile the ceasefire betwixt Iran and the United States seems to person unraveled.

Why did the Iran warfare rise state prices here?

The U.S. produces much than 13 million barrels of crude oil a day, arsenic of January. We export much oil than we import. But we also consume a batch of oil, and we import about 6 million barrels a day. Only a small fraction comes from the Persian Gulf.

Based connected those facts, you mightiness deliberation a warfare successful the Middle East would person no bearing on state prices successful the United States. You would beryllium wrong.

"It's a planetary market," said Mark Zandi, main economist of Moody's Analytics, speaking to USA TODAY earlier this year. "So, lipid virtually flows to the highest price. If a tanker tin get a higher terms successful Malaysia than it tin successful Rotterdam than it tin successful Rio de Janeiro, it's going to spell to Malaysia."

When the United States began airstrikes against Iran, lipid prices spiked astir the globe.

By 1 benchmark, the West Texas Intermediate index, crude oil prices roseate from astir $67 connected Feb. 27 to astir $105 on March 30.

Oil prices roseate due to the fact that the Iran warfare crippled proviso in the region, betwixt the closure of the Strait of Hormuz, the abrupt danger in shipping lipid and collateral harm to oil-industry infrastructure, among different factors.

War threatened the lipid proviso to regions that trust heavy connected lipid from the Middle East, including parts of Asia and Europe. Prices spiraled everywhere, including here.

"Everybody's competing for the aforesaid tube of oil," said James Cox, managing spouse astatine Harris Financial Group, successful an interrogation earlier this year. "It doesn't substance whether it's produced successful Texas oregon Iran oregon Saudi Arabia oregon Russia."

The United States is the top oil-producing nation on Earth. But we are besides the apical lipid consumer. And America's lipid producers are portion of the planetary market.

"We nutrient arsenic overmuch arsenic we consume," Zandi said. "But astatine the extremity of the day, the producers present are going to merchantability to whoever tin springiness them the highest prices, arsenic well. They're businesspeople."