By Rafael Garcia
It may be months or even years before the long-term geopolitical ramifications of this weekend's airstrikes in Iran become clear, but a Kansas State University agricultural economist says gas prices are likely to spike in the coming weeks.
Gregg Ibendahl, associate professor of agricultural economics, specializes in agricultural production and finance, especially fuel pricing seasonality and impacts to the ag industry.
As a region, the Middle East is the world's leading producer of oil, and any uncertainty in the stability of the region's governments, economies and shipping capacity has typically resulted in price shocks, Ibendahl said.
Following airstrikes on Saturday that killed Iran's Supreme Leader Ayatollah Ali Khamenei and subsequent reciprocal strikes, crude oil futures had already risen 8%, from $67 per barrel on Friday to $72 on Monday morning.
Source : k-state.edu