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All this week, the big factor behind rising oil prices has been the standoff between Britain and Iran over the fate of 15 British sailors seized by Iran in the Persian Gulf on March 23.
But the steadily heightening tensions - British Prime minister Tony Blair now intends to take the matter to the UN Security Council - has camouflaged another factor likely to make this another long hot summer for American drivers even if the crisis is resolved and the sailors are eventually released.
No, we're not talking about Iran's unpredictable and eccentric leader, Mahmoud Ahmadinejad. Bad as he might be, our own surging demand for gasoline and diesel is also partly to blame for the run-up. Coupled with the approach of the summer driving and hurricane seasons, thirsty American drivers are likely to keep the oil markets roiling for months.
"Total product demand in the U.S. has been very strong," says Lehman Brothers chief energy economist Ed Morse. So far this year, demand for gasoline and diesel is up more than 500,000 barrels a day from a year ago, an increase of 2.6 percent.
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