The data shows Iran-related price spikes at the pump are greed, not economics.

After a week of bombing Iran and related Middle Eastern strife, you may have noticed an increase of prices at the pump. AAA sure has.

It's a similar straight-line jump in prices to what we saw 4 years ago after Russia invaded Ukraine on Feb. 24, 2022, and the Biden Administration and much of the rest of the Western World placed sanctions on Putin's oil-rich country. In that case, prices went up by 70 cents in the first 2 weeks of March, nearly 20% higher than what they were before the invasion.

But just like the situation in 2022, we also know that all the oil that is in the gasoline at those pumps has been in this country for weeks and months. And even more so than in 2022, we should be suspicious of these price hikes, because gasoline is more plentiful now than it was 4 years ago.

And part of the reason gasoline is more plentiful is that gasoline usage is generally lower than it was for much of 2022.

"But Jake, what about oil prices now? Yeah, oil futures are up a lot this week, going over $80 a barrel for the first time since the Summer of 2024 before dropping down below $80 in overnight trading.

But see that APR '26 reference? That's for the price of oil in 2 months, not today.

Put it all together, and there is no supply-and-demand reason for gasoline to be spiking the way it is. It's a profit grab, and I'd like to see people like Wisconsin AG Josh Kaul publicly be saying that he will go after gas stations and other chains that use these war actions in Iran as a reason to take extra funds out of the pockets of Wisconsin drivers.

Now that doesn't mean there won't be real economic effects and warranted higher prices in the future. And the resulting inflation of costs and consumer products should end any talk of further rate cuts for any time in the next few months - especially as the year-over-year inflation rate likely goes back over 3%. But the current price increases at the pump? All speculation and greed.