U.S. Gas Prices Jump Over 60% as Iran War Exposes Refinery Limits

6 articles · Updated · NC State CALS · May 14

Gasoline prices in the U.S. have risen more than 60% since the Iran conflict began, while airline tickets—tracking higher jet-fuel costs—are up nearly 20%.
The surge has hit despite the U.S. being the world’s largest oil producer because many domestic refineries were built decades ago to process heavy crude, while U.S. output is dominated by light oil.
Geography adds to the constraint: much U.S. crude is produced inland and in Alaska, but refineries sit mainly on the coasts, often making imported oil easier to deliver than domestic barrels.
Global pricing also limits insulation from shocks, since oil trades as an international commodity and tends to converge around the same benchmark price across the Middle East, Europe, Asia and the U.S.
Refitting refineries to handle more light oil could reduce imports, but conversions can cost millions of dollars and possibly approach $1 billion, while 91% of U.S. vehicles still run on gasoline.

Why must America import oil and export its own, leaving drivers vulnerable to global price shocks?

The Iran crisis choked off more than just oil. How does it now threaten the global green energy transition?

Is spending billions on refinery upgrades a smarter path to energy security than accelerating the switch to alternative fuels?