ROANOKE, Va. – While the war between Israel and Hamas rages on, many people are wondering how it will impact us here at home.
One way could be gas prices.
Historically, conflict in the Middle East drives up the price of oil and gas.
Despite this, gas prices are down in Virginia since summer travel ended.
“Here in Virginia, we are at 3.37 today. Down seven cents in a week, down 22 cents in a month, and 19 cents lower than we were a year ago,” said AAA Mid-Atlantic spokesperson, Morgan Dean.
A new concern is on the horizon threatening gas prices — the Israel-Hamas war.
While Israel and Palestine are not major oil producers, concerns could grow if the war does.
“The future price movements really depend on how this conflict is handled. In the past, we have seen both strong and moderate price reactions to conflicts in the Middle East depending on how extensive they were,” said Virginia Tech Professor of Agriculture and Applied Economics, Olga Massa.
She said prices could change dramatically if the war begins to impact countries near the Strait of Hormuz, a waterway used for transporting oil located between Iran and Iraq.
“About 20 to 30% of global oil trade goes through the Strait of Hormuz. And in the past, we have seen disruptions of this trade flow due to political turmoil,” said Massa.