As oil prices surge due to the ongoing conflict with Iran, experts warn that Americans should brace for rising costs in various products. Crude oil prices neared $100 a barrel by Friday, with the national average gas price at $3.91, reports AAA.
Heather Boushey, a professor at the Kleinman Center for Energy Policy, University of Pennsylvania, noted that these price hikes will significantly affect the economy, disproportionately impacting low-income individuals. “Oil shocks have historically had a significant economic impact,” she stated.
Boushey highlighted that no economic sector is fully protected from oil price increases due to the effective closure of the Strait of Hormuz. Prices for items like nitrogen fertilizer, which affects corn prices, and shipping costs for consumer goods may rise the longer the crisis persists.
Historically, fuel price shocks have prompted increased interest in renewable energy investments from consumers, businesses, and governments.
Alex Jacquez, chief of policy and advocacy at Groundwork Collaborative, mentioned, “When gas prices rise, interest in electric vehicles tends to increase.” Signs of this trend are appearing internationally, with increased visits to electric vehicle dealerships in Asia, where price impacts are more severe.
In the U.S., misinformation about fossil fuels may hinder renewable energy and EV adoption, said Sen. Sheldon Whitehouse (D-R.I.). “A concerted campaign, involving the Trump administration, aims to mislead the public about the costs of clean energy,” he told Inside Climate News.
Whitehouse emphasized that misconceptions about fossil fuels being cheaper than renewables are part of a strategy to safeguard the interests of Trump’s major donors.
The White House claimed, without evidence, that green energy is “unreliable and unaffordable” for America’s energy infrastructure. “President Trump focuses on reliable, affordable energy sources to avoid reliance on supply routes like the Strait of Hormuz,” read a statement.
Trump’s policies have supported fossil fuel companies, such as a subsidy for metallurgical coal included in the One Big Beautiful Bill Act. This gave a 2.5% tax credit for met coal production, potentially benefiting the industry by $200 million to $300 million annually, as analyzed by Inside Climate News through U.S. Energy Information Administration data.
Ensuring the federal government provides accurate information on energy costs and impacts is one way to counter misinformation that deters renewable and EV investments, according to Whitehouse.
Sen. Whitehouse remarked that a Democratic win in the November elections could mean less influence from fossil fuel interests on U.S. policies.
Federal messaging on renewables and EVs has varied across administrations. Despite the Trump administration’s emphasis on fossil fuels, the Environmental Protection Agency’s website still debunked myths about EV usage as of March 20.
While messaging is vital, Jacquez explained that policies on renewables and EV use are crucial for consumer adoption. The absence of EV tax credits and fossil fuel subsidies are hurdles to a more efficient energy grid.
Jacquez stated, “The Trump administration’s approach to the Inflation Reduction Act has harmed consumers, particularly regarding electric vehicles.” Encouraging EV and renewable adoption requires more than rhetoric; it’s essential to support American manufacturers against foreign competition, such as Chinese EV producer BYD.
Michael Staley, president of the Alabama Clean Fuels Coalition, noted that rising gas prices due to the Iran conflict highlight the economic benefits of EVs. “America can limit its exposure to global oil shocks with EVs,” he wrote in an op-ed.
Original Story at insideclimatenews.org