United States and Israel attack Iran Early Saturday Morning

MACKTEXAS said:
"How would the current scenario translate into deflation?" It doesn't. I mentioned how long it has been since we've seen a period of deflation to emphasize the point I made which preceded it. Due to higher gas prices (or gas shortages in some countries) we can all expect to all experience inflation, and the higher costs for goods we can expect to see will far exceed the higher prices most of us seniors pay for gas. I average filling my tank once a month. My biggest cost hikes will likely be experienced in what I pay for necessities.
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I reread and corrected my post, thanks. (I'm blaming my fuzzy brain on the switch to DST... that's my story and I'm sticking with it.)
 
MACKTEXAS said:
"How would the current scenario translate into deflation?" It doesn't. I mentioned how long it has been since we've seen a period of deflation to emphasize the point I made which preceded it. Due to higher gas prices (or gas shortages in some countries) we can all expect to all experience inflation, and the higher costs for goods we can expect to see will far exceed the higher prices most of us seniors pay for gas. I average filling my tank once a month. My biggest cost hikes will likely be experienced in what I pay for necessities.
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If pump prices remain high, it could filter through other areas of the economy and prompt inflation throughout. It is the purchasing habits of consumers that could likely shift, if prolonged.

Example: People considering buying a home, may choose to delay such a purchase. The ripple effect of many doing this would result in housing developers still being required to meet their financial obligations. Which results in slowing or stopping of development (job losses) and/or reducing prices to offload excessive inventory.

Financial institutions could be strained, as the market value of housing would fall, and ability to provide loans is diminished... further constraining growth. That becomes the prospect of deflation, with rising unemployment, etc.
 
CallMeKate said:
I've never understood why some locations can get away with charging so much more for the same gas. It's still $2.89 at most of our stations here. There's one that's always been at least 10 cents higher than the rest, and even that one is only at $3.08 now.
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Gas taxes are set by states and our gas taxes are higher than most. California also uses a special fuel blend that burns cleaner so emissions (pollutants) are lessened.

Unleaded gas here is $4.89 at Costco, and runs about 15¢-$1.25 higher per gallon at other stations.
 
From AI Overview:
"As of March 9, 2026, the lowest gas prices in the U.S. are concentrated in the South and Midwest, with Oklahoma reporting the lowest statewide average at approximately $2.25 to $2.62 per gallon, followed closely by Mississippi, Tennessee, and Texas."
 
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Harry Le Hermit said:
Financial institutions could be strained, as the market value of housing would fall, and ability to provide loans is diminished... further constraining growth. That becomes the prospect of deflation, with rising unemployment, etc.
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Yes. Even before the war, indications were that consumers are / were pulling back. House sales have stagnated in my area compared to 18 months ago.

I was posting near term, but yes, prolonged inflation = reduced spending = recession = deflation.
 
StarSong said:
Gas taxes are set by states and our gas taxes are higher than most. California also uses a special fuel blend that burns cleaner so emissions (pollutants) are lessened.

Unleaded gas here is $4.89 at Costco, and runs about 15¢-$1.25 higher per gallon at other stations.
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Yeah, gas prices in Cali are outrageous! You know it's bad when gas is $4.89 at Costco. My good friend who lives in Cali has a hybrid car. She loves it, but the down side to that is it can cost $20,000 to replace the batteries for those cars!
 
hollydolly said:
Saudi Arabia - the biggest oil supplier in the region - is said to be curbing output at two major fields in the latest sign of fallout from the war.

The news emerged as experts warned that petrol could hit £2 a litre for the first time, amid a staggering spike in global oil costs.

That makes £9 per gallon ...equivelent to $12 USD per gallon.... for a war we're not involved in.... 😩 😩
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In the 1990s, some people in Germany have already called for a gasoline price of 5 German marks per liter, which is equivalent to about 2.50 euros. Converted to US gallons, that is 10.41 dollars per gallon at the current exchange rate.

Today we've had already 2.16 Euro per liter gasoline, which is 9.48 dollars per gallon.
 
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George1959 said:
In the 1990s, some people in Germany have already called for a gasoline price of 5 German marks per liter, which is equivalent to about 2.50 euros. Converted to US gallons, that is 10.41 dollars per gallon at the current exchange rate.
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George I;m not sure what you mean by the 1990's..we're talking about the rise in price to £9.00 sterling... today..... equivalent to $12 USD per gallon
 
Breaking news...


French President Emmanuel Macron has announced an ambitious plan to deploy eight warships to the Strait of Hormuz amid increasing fears over surging oil and gas prices.

Speaking in Cyprus, President Macron said the 'purely defensive mission' led by France and its allies would protect oil and gas shipments through the waterway where traffic has been choked off following the war with Iran.

The French leader said he wanted to see an 'unprecedented' naval force of European and non-European ships in the Mediterranean, the Red Sea and off the Strait of Hormuz consisting of a total of eight frigates, two helicopter carriers and the Charles de Gaulle aircraft carrier.

It comes as oil prices surged to more than $100 per barrel for the first time in four years as major producers cut supplies over fears of prolonged shipping disruption.

An emergency meeting of the G7 was held in Paris earlier with crisis options including the release of oil reserves discussed but no final decision has been made.

Elsewhere the US Navy has reportedly attacked three Iranian ships in the Persian Gulf. Sources say the merchant vessels were struck during strikes on the Iranian port city of Bandar Abbas. Video and pictures circulating on social media show flames and huge plumes of smoke blowing from the ships.
 
hollydolly said:
George I;m not sure what you mean by the 1990's..we're talking about the rise in price to £9.00 sterling... today..... equivalent to $12 USD per gallon
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Yes Holly, I know. But I wanted to show that certain people in Germany for environmental reasons wanted a price for gasoline already in the 1990s(!) of 5 German marks, which is now about Euro 2.50 per liter or 10.41 dollars per US gallon. I can't be more precise since I don't want being political. I've added in my former comment how the highest price in my former hometown was today.
 
This war is causing the price of oil to rise dramatically, which, in an ideal world, would be the impetus for heavy investments in alternative energy sources such as wind and solar power so we're not so dependent on oil.

In the past year, we've dramatically cut investments in alternative energy sources. Tax credits have been eliminated and permits have been paused for new construction of wind and solar farms. Perhaps now that oil production and distribution has been disrupted around the world, those in charge will take another look at renewable energy sources.
 
RambleTamble said:
This war is causing the price of oil to rise dramatically, which, in an ideal world, would be the impetus for heavy investments in alternative energy sources such as wind and solar power so we're not so dependent on oil.

In the past year, we've dramatically cut investments in alternative energy sources. Tax credits have been eliminated and permits have been paused for new construction of wind and solar farms. Perhaps now that oil production and distribution has been disrupted around the world, those in charge will take another look at renewable energy sources.
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Unfortunately, not if the oil industry can help it. They have spent over a billion dollars in the last decade lobbying to weaken environmental protections and hinder clean energy.
 
RambleTamble said:
This war is causing the price of oil to rise dramatically, which, in an ideal world, would be the impetus for heavy investments in alternative energy sources such as wind and solar power so we're not so dependent on oil.

In the past year, we've dramatically cut investments in alternative energy sources. Tax credits have been eliminated and permits have been paused for new construction of wind and solar farms. Perhaps now that oil production and distribution has been disrupted around the world, those in charge will take another look at renewable energy sources.
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Wind and solar power are no reliable sources of electrical energy. Much better would be to build safe nuclear reactors. Now you might ask how could they be safe? The Dual Fluid Reactor is. It's not in use yet, but it could be soon.

Dual fluid reactor - Wikipedia
 
George1959 said:
Yes Holly, I know. But I wanted to show that certain people in Germany for environmental reasons wanted a price for gasoline already in the 1990s(!) of 5 German marks, which is now about Euro 2.50 per liter or 10.41 dollars per US gallon. I can't be more precise since I don't want being political. I've added in my former comment how the highest price in my former hometown was today.
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yes I know what you mean..I'm trying my best not to get political here as well.. by not naming names of Politicians...
 
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Here in the US domestic production accounts for at least 60% of our overall oil consumption. So the war will not significantly increase the cost of producting that oil. So if our domestic producers were "true American patriots" they would continue to provide that oil to their fellow Americans at pre war prices. But of course they won't. They will use the increase in the price of oil on the world market as an excuse to increase their profit margins at the expense of their fellow countrymen.
 
Harry Le Hermit said:
Some rollback in the futures, so the $3.45 national average of today will become about $3.90 shortly. Of course this reflects the Asian market impact on futures. Not seeing anything related to movement of tankers out of the Persian Gulf, so don't expect much sustained downward trend in pricing, imo.
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Considerable roll back from last evening's panic bidding. Not sure the pullback is based on reality.

Certainly the Asian countries, which are most affected by the stoppage of tanker traffic in the gulf... will likely start drawing from reserves. I doubt they can pull it out as quickly enough. The G-7 failed to go along with SPR releases.

Of course, there is the possibility of countries banding together with their military fleets to escort/ensure tanker traffic moves in and out of the gulf. Somehow there is a strange belief the Iranians wouldn't dare to target this fleet. Of course, who would participate and who is leading... should be an interesting debate.
 
MACKTEXAS said:
Gas prices are volatile; subect to daily market changes, which makes them an unreliable indicator of the true inflation rate. The bigger concern will be prices on food and necessities caused by gas (transportation) costs. Once raised, those prices do not drop, once gas prices stabilize or lower. That would be deflation, and the last time the CPI showed sustained annual deflation was in 2009.
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Exactly that. As you seem to be pointing out, oil is traded on a global market, and the price is set by that market.

As for the UK, it isn’t really a supply problem, as most of the crude oil refined in the UK comes from outside the Gulf region. We buy from the USA (37%), Norway (31%), followed by Nigeria (6%), Saudi Arabia (5%), and Iraq (3%). UAE and Kuwait less than 1%. Then about 9% from a mix of other nations.

The UK supplies itself with some oil from the North Sea (around 8 to 9%). Much of that North Sea oil, known as Brent crude, is a light oil and therefore has a higher valuable, so a large portion of it is sold on the global market rather than refined domestically.

I read recently that the UK holds "strategic oil stocks" as part of an international agreement. Member countries maintain reserves equivalent to roughly 90 days of net imports so that oil can be released onto the market during major disruptions.

Like the US, the UK isn’t facing a shortage of oil. We are facing a global market pricing issue due to the war.
 
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Harry Le Hermit said:
Considerable roll back from last evening's panic bidding. Not sure the pullback is based on reality.

Certainly the Asian countries, which are most affected by the stoppage of tanker traffic in the gulf... will likely start drawing from reserves. I doubt they can pull it out as quickly enough. The G-7 failed to go along with SPR releases.

Of course, there is the possibility of countries banding together with their military fleets to escort/ensure tanker traffic moves in and out of the gulf. Somehow there is a strange belief the Iranians wouldn't dare to target this fleet. Of course, who would participate and who is leading... should be an interesting debate.
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Call me shocked. The energy futures market is in near free fall. Gasoline pump prices are nearing their projected top. Apparently over some statements being made. We'll see if they come to fruition.
 
Harry Le Hermit said:
Call me shocked. The energy futures market is in near free fall. Gasoline pump prices are nearing their projected top. Apparently over some statements being made. We'll see if they come to fruition.
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It's my understanding that Chevron Oil has completed some initial improvements to infrastructure and started production in Venezuela.
 
Murrmurr said:
It's my understanding that Chevron Oil has completed some initial improvements to infrastructure and started production in Venezuela.
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It will be a long haul to get Venezuela to increase production, as the most optimistic outlook, is an increase from current 1Mbpd to 1.2Mbpd by 2027.

Venezuela has massive crude oil reserves, which is mostly heavy/sour, which requires significant infrastucture to process. There is very little infrastructure and would require quite a large investment.

In any case, the increases of production would pale in comparison to the 20M+bpd bottleneck in the Persian Gulf.
 
According to the media, after a telephone call earlier today with Vladimir Putin, Trump told reporters US forces are 'very far ahead of schedule', claiming Iran's military has effectively been destroyed.

'I think the war is very complete, pretty much,' Trump told CBS News. 'They have no navy, no communications, they've got no Air Force ... Wrapping up is all in my mind.'​
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Trump's remarks came after Putin shared a proposal to quickly end the war during the call, according to the Kremlin. The two leaders also discussed the current war in Ukraine as well as the oil market in Venezuela.

Of course, you can't believe everything you read in the media. Is this being reported in the USA?
 
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