The factoid thrown around is that roughly 20% of the world’s oil supply travels through the Strait of Hormuz. Since it closed, my local gas prices in one area of the US midwest have gone from $2.60 to now $4.10 presumably as reserves have been used up.

I could understand a 20~30% increase in price to correlate with the reduction in supply, but what are the economic factors that lead to what feels like such a disproportionate increase?

you are viewing a single comment's thread
view the rest of the comments
[–] 2 points 6 months ago (3 children)

It doesn't. The world is full of greedy psychopaths.

  • source
  • hideshow 3 child comments
  • load more comments (1 reply)