The war in Iran has prompted changes to the supply and price of oil in the U.S.
Since the war in Iran began on Feb. 28, 2026, exports of crude oil through the Strait of Hormuz have been restricted. This has affected several aspects of American life, including the automotive industry, industrial production and electricity prices.
Experts say the U.S. can help address the oil supply deficit by tapping into crude oil reserves or reducing gas exports.
Dale Rogers, Professor at the W. P. Carey School of Business at Arizona State University, joined “Arizona Horizon” to discuss the current U.S. oil supply.
Rogers expressed doubt in Arizona gas prices falling below the four-dollar threshold.
“I don’t think we’re going back to $3 a gallon anytime soon. I wish we were, but it’s likely that the price is going to be higher,” Rogers said.
The Strait of Hormuz blockade has limited the flow of sulfur. Sulfur is an essential component of sulfuric acid, a mineral acid used to separate rare earth ores. Car manufacturing companies are heavily impacted by this supply chain shock.
“You can already see we’ve had a shortage on rare earths because China controls most of them. And just to make a car door, you need the magnets of the rare earths. So, the auto companies keep getting hit over and over again. This is a tough time to be a car company,” Rogers said.
There is a difference between an oil deficit and a shortage. When America is in a deficit, the country resorts to its emergency stockpiles. If a shortage were to occur, the stockpiles would hit an operational floor.
While explaining how America is in a deficit, Rogers warned the country could be in a shortage by midsummer.
“We’re already in a deficit, we’re not in a shortage. A lot of Asia and some of the poor countries are in a shortage already. But, if nothing changes, we’ll be at shortage levels sometime around the beginning of July,” Rogers said.
