BAKERSFIELD, Calif. (KBAK/KBFX) — Recent political tension between the U.S. and Iran is having an impact on the oil industry.
Iran has said it would temporarily block parts the Strait of Hormuz, a key oil export route, causing shockwaves in global oil markets.
The route plays a major role in oil exports for Saudi Arabia, The United Arab Emirates and Iraq.
If the flow of oil in and out of these regions is impacted, the oil industry may see a major shakeup.
While the U.S. in now a net exporter of oil rather than relying on imports, experts say that doesn’t mean Americans are in the clear.
Vice President and Senior Technical Director for Anacapa Engineering and Design Stuart Heisler joined ARC Bakersfield to break down what this means for oil prices in California.
Heisler says that closing the Strait of Hormuz could cause oil prices to increase across the nation.