Yes, oil prices have shot up since the bombing of Iran began amid shipping disruptions through the Straits of Hormuz, but Ashley Finley in the WSJ discusses why higher prices are likely to be short-lived.

Unlike past oil shocks in the 1970s and the first Gulf War, she explains, the US isn’t dependent on the Middle East for oil. Most of the oil consumed by the US is produced in the US and Canada. There is an exception, however. And that exception is California, which imports of its crude and 15% of its gasoline due to anti-fossil-fuel policies that have constrained in-state production and limited pipelines from America’s Gulf Coast. Most of California’s crude imports arrive from South America.

Oil trades globally, so in the short term, the US will see higher prices. But it is unlikely that the US will risk fuel shortages. Globally, China is more vulnerable. Much of China’s oil comes from the Middle East and Russia.

Even at current prices, reports Ms. Finley, fueling a gas-guzzler is cheaper than charging an electric vehicle.

“In any case, prices are lower than they were during most of the Biden presidency. Thank increased oil production in the U.S. and the rest of the Americas. While prices may rise further, they are unlikely to remain elevated for any significant duration.”