Iran is a major exporter of crude oil to the world and with President Trump’s new and future sanctions on the country is causing a major disruption in the global oil markets. Saudi Arabia and OPEC had promised to ‘mitigate’ the effects of the sanctions to keep oil prices stable; however, that has yet to happen. Many in the oil industry are skeptical about Saudi Arabia’s promise yesterday as they have stated prior to yesterday’s announcement that their goal is to slowly lower inventories in order to raise prices.
One thing is for sure, Americans can expect prices at the gas pump to continue to rise. On May 7, 2018, Florida gas prices averaged $2.73 when this same time last year the price averaged $2.375.