$5 a Gallon Gas a Possibility Later This Year
Posted on January 3, 2012Five dollars a gallon gas is a possibility later this year. Prices were at record levels for the holiday season. This could mean gas prices reach the $4 or $5 level during the summer driver season. Iran turmoil could quickly drive prices up to the $5 a gallon level or higher. Iran's threat to close the Strait of Hormuz last week already caused oil prices to spike. 20% of the oil traded in the world passes through the strait.
A Wall Street Journal story says Iran lacks the military might to completely block the strait, but they could slow things down by planting lots of underwater mines. We certainly hope that doesn't happen.