Could gas prices rise after US killed Iran general? Here’s what you need to know
Oil prices jumped after a U.S. airstrike killed Iran’s top general, but whether Americans will pay for it at the pump depends on how Iran reacts, experts say.
The price of Brent crude, which is a global oil pricing benchmark, rose more than 3% to reach $68.69 a barrel Friday after the killing of General Qassem Soleimani in Iraq. Gas comes from refined crude oil.
Friday’s increase is the highest prices have been since September, when drone strikes hit the world’s largest oil processing facility in Saudi Arabia, as reported by The New York Times. U.S. officials blamed that attack on Iran, which the country’s officials denied.
Saudi Arabia was able to restore operations relatively quickly after the attacks and prevent a large jump in gas prices. Patrick De Haan, head of petroleum analysis at GasBuddy, said this is why a potential rise in prices in the future would depend on how long and how much oil production abroad would remain inactive.
“I don’t foresee any situation that would put gas prices at a record high,” he said. “But there could be bumps in the road in the months ahead if there is retaliation.”
Devin Gladden, national spokesperson for AAA, said he doesn’t expect there to be a long-term impact from today’s rise in oil prices.
“Fuel contracts are set longer term in advance,” he said. “There are two driving factors: if crude oil stays high and how high prices go.”
Is the US headed for World War III? Here’s what experts say as Twitter fears the worst
But De Haan said there could be a short-term — and small — increase at the pumps.
“There may be a 5 to 10 cent increase,” he said. “Because the increase is so small I don’t expect it to immediately pan out. It may take a week or 10 days.”
The Department of Defense said in a statement that they carried out the strike because Soleimani was “actively developing plans to attack American diplomats and service members in Iraq and throughout the region.”
Iran President Hassan Rouhani has promised action in response to the attack. In a post on Twitter, he said the country would “take revenge for this heinous crime” following three days of mourning for the general.
Because of this, De Haan said it was guaranteed oil companies have increased security on their sites.
U.S. officials previously announced thousands of troops would be deployed to Iraq in response to the threat. Iran’s State TV also said that the United States has urged Americans to leave the country immediately.
What Trump and 2020 Democrats are saying about Soleimani’s death
Trump took to Twitter the day after the killing, saying Soleimani “should have been taken out many years ago.”
Iran never won a war, but never lost a negotiation!
— Donald J. Trump (@realDonaldTrump) January 3, 2020
....of PROTESTERS killed in Iran itself. While Iran will never be able to properly admit it, Soleimani was both hated and feared within the country. They are not nearly as saddened as the leaders will let the outside world believe. He should have been taken out many years ago!
— Donald J. Trump (@realDonaldTrump) January 3, 2020
In a press conference Friday afternoon, Trump said a “flawless precision strike” killed Soleimani, who was plotting “imminent and sinister attacks on American diplomats and military personnel.”
“But we caught him in the act and terminated him,” Trump said.
The president pushed back against those saying the attack could start another war.
“We took action last night to stop a war,” Trump said. “We did not take action to start a war.”
Meanwhile, Democrats vying for the party’s 2020 nomination for president urged restraint amid fears the killing of Soleimani could provoke retaliation from Iran.
We need to get out of Iraq and Syria now. That is the only way that we're going to prevent ourselves from being dragged into this quagmire, deeper and deeper into a war with Iran. #WWIII #TrumpsWar #StandWithTulsi pic.twitter.com/nb8mLfiywq
— Tulsi Gabbard (@TulsiGabbard) January 3, 2020
My statement on the killing of Qassim Suleimani. pic.twitter.com/DUCVczjNzm
— Pete Buttigieg (@PeteButtigieg) January 3, 2020
I was right about Vietnam.
I was right about Iraq.
I will do everything in my power to prevent a war with Iran.
I apologize to no one. pic.twitter.com/Lna3oBZMKB— Bernie Sanders (@SenSanders) January 3, 2020
My statement on the killing of Qassem Soleimani. pic.twitter.com/4Q9tlLAYFB
— Joe Biden (@JoeBiden) January 3, 2020
Donald Trump is dangerous and reckless. He's escalated crises and betrayed our partners. He's undermined our diplomatic relationships for his own personal, political gain.
We cannot allow him to drag us back into another war. We must speak out.— Elizabeth Warren (@ewarren) January 3, 2020
— Amy Klobuchar (@amyklobuchar) January 3, 2020
It is essential that we protect American service members and citizens throughout the region while working with our allies to prevent further escalation that could lead to a devastating war that Americans do not want. (2/2)
— Tom Steyer (@TomSteyer) January 3, 2020
Statement on the killing of Qassem Soleimani. pic.twitter.com/NIiDJSOjZy
— Mike Bloomberg (@MikeBloomberg) January 3, 2020