Written by Walter Hecht   

If you have been watching TV coverage of the aftermath of hurricane Sandy, you have probably noticed the long lines of motorists waiting to purchase gas for their vehicles. The lines are the result, not of shortages, but of the absence of electricity to power the gas pumps at the service stations. During 1973-74 and again in 1979, gas lines like the ones you are seeing in New Jersey and New York formed everywhere in the US because of actual shortages of gasoline. The shortages were relatively small, 6%+, but there was panic buying. Short tempers caused fights to break out in lines as some motorists tried to jump ahead of others who had been waiting longer.

What you are seeing today in a small part of the country could be the future of the entire country, if we or Israel bomb Iran. The mere threat of Iran closing the Strait of Hormuz could create shortages and send gas prices soaring. The US Navy may be able to keep shipping safe in the area, but insurers will raise their rates immediately on ships in the area. The threat of an Iranian attack will be sufficient to keep some ship owners out of the area. If you do not want to spend time in lines awaiting your opportunity to buy gas in rationed quantities at high prices, tell your politicians not to attack Iran.