Behind the ceasefire: The global oil battle driving gas prices
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IDAHO FALLS — Days after a ceasefire was reached between Iran, Israel and the U.S., the future of the conflict remains uncertain.
At the center of it is the Strait of Hormuz, through which 20% of the world’s oil passes during peacetime. The ability of ships to pass through the strait has a significant impact on gas prices.
This week on “It’s Worth Mentioning,” Rett Nelson speaks with AAA Idaho Public Affairs Director Matthew Conde. Conde provides some perspective on the recent ceasefire agreement and whether gas prices will decrease in the near future.
Conde discusses current gas prices and when they were at their highest, then gets into the historical trend in fuel costs, when prices were very low — under $1 a gallon. Why were they that low? What led to the gradual price increase? A lot of it had to do with the formation of the Organization of the Petroleum Exporting Countries, or OPEC.
He talks about its founding, the motive of the founding countries, which include Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, and the U.S. response.
Conde shares where Idaho gets its oil and the process involved.
In 2020, the U.S. briefly resumed oil drilling to achieve energy independence. Although that’s been the goal of several U.S. presidents over the years, Conde discusses whether that’s feasible and what it would take to see a significant, long-term decrease in gas prices.
Finally, will we ever see gas prices below $1 again?
It’s a conversation that impacts everyone, which is why “It’s Worth Mentioning.”
Watch previous episodes here. Check out the show on Facebook. If you have a tip or a guest idea, email rett@eastidahonews.com.