Strait of Hormuz Blocked, Gas Prices Spike

0:00In Anchorage, it's March 12th, and here's what is going on. Gas prices are spiking in Alaska and worldwide because the war in Iran has shut down shipping through the strait of Hormuz. This vital waterway handles one-fifth of global crude oil and natural gas shipments. Oil prices jump from around $80 a barrel to over $120 last week on fears of long-term supply cuts. Experture shipping firms, like mayors, are now steering clear of the strait to avoid the risks. Meanwhile, French President Emmanuel Macron is rallying nations to use warships for escorting tankers once fighting eases. Even with President Trump urging ships to keep moving, experts call it too dangerous right now. Economists in Alaska point out the surge stems from worry over future shortages, not today's gaps. Many folks will notice at first at the pump with higher gas and diesel costs that could fuel inflation and raise recession odds, hitting food and goods transport hard.

1:00In response, international energy agency members are tapping strategic reserves for 400 million barrels of oil. It's a band-aid move, covering just 20 days if the strait stays blocked and 20 million barrels a day are lost. Prices dipped a bit after the news, but remain way up. Alaska producers and the state budget stand to gain if high prices hold, bringing in extra revenue. But no one is committing to new drilling or big investments on what might be short-lived gains. The only real fix is reopening the strait and ending the disruptions. The daily news now is made possible with support from our sponsor. Your favorite podcasts, music or sleep sounds coming from your pillow. No earbuds, no distractions, just listen and relax. That's all. I, SullyPillow.com.