Fox Business Host Warns $5-Gallon Gas if Iranian Tension Persists
Unnoticed in the recent upheaval surrounding the fallout from the Iranian elections earlier this month has been how it could affect the price of oil, and therefore the price of gas. And according to Fox Business Network "Happy Hour" co-host Eric Bolling, the longer this goes, the more likely you'll see it at the gas pump.
Bolling appeared on the Fox News Channel's "Your World with Neil Cavuto" on June 19 and explained how events in Iran, the world's fourth largest oil-producing nation, would have a lagging impact on the price at the pump.
"Now think of this - it takes about 45 days to take a barrel of oil, run it through a refinery and hit the pump, the price at the pump," Bolling said. "So knowing this, for the next two or three weeks, at least, at minimum, pump prices will continue to rise. It may go down a penny or two here, but in general they'll continue to rise."
Bolling told Cavuto consumers would see another 20 cents added to the price going forward at minimum.
"Right now, $2.69 [a gallon] average - there's probably another 20 cents at least already baked into the price, the pump price you're going to see going forward," Bolling said.
Last summer, the high point of gas was $4.11 a gallon according to the Fox News segment. But, should things escalate with the fallout of the Iranian elections - Bolling said that could send oil to $200 a barrel and gas to $5 a gallon.
"If you see a continued uprising in the Middle East, whether it's through civil war in Iran, if you see Israel do any sort, any sort of attack on Iranian nuclear facilities, if you see the Straight of Hormuz, which the north side of the Straight of Hormuz is bordered by Iran," Bolling said. "If they close that down or at least stifle some of the shipping that goes through there, you could see $3-$4 easily. You might even see a $5. At $200 a barrel, that translates into a $5 pump price."
However, the one wildcard Bolling said would be Israel and how it reacts to a nuclear Iran under duress.
"I will tell you the most interesting, the most intriguing part of this whole thing going on here is Israel is saying, ‘You know what - fine. Ahmadinejad - he's your guy? He's our guy too.' Is that a precursor for them to say, ‘Hey, we warned you about him. We told you, with or without U.S. support, we're going to take him out.' They already told us they're going to do it. If they do do that Neil, you could see a substantially higher price for oil and therefore higher price for gas."
The price of oil has retreated since the unrest in Iran escalated. On June 19, it closed under $70 a barrel, the lowest price since June 9.