Iran Tensions Cause Gas Price Spike, Not Shortage

0:00A March 12th, here's the latest out of Birmingham. Drivers in the United States are seeing a small increase in gas prices amid tensions in Iran. A professor of supply chain management at the University of Alabama at Birmingham explains that this bump has nothing to do with a real shortage of, oil. The country has months of reserves to protect against any direct disruptions from overseas. Instead, the price jump comes from a surge in demand as people and energy companies rush to fill their tanks. They are reacting just like anyone would to bad news, creating a temporary hype that drives up costs. If the conflict drags on for more than about a month and a half, global supplies could tighten and lead to steeper price hikes. We'd like to thank our sponsor for making this episode possible. Your bedtime ritual just got better. Wilton Sound, built in comfort, S-O-L-I, solelypillow.com