Can someone explain in layman's terms why oil prices would increase

[CassandraM]

because a US ship fired on an Iranian one? Okay, I'm a newcomer to this whole political/economic scene, and and desperately trying to make heads or tails of it.

Can someone please put this in terms that can be easily understood? The media doesn't seem to be communicating this domino effect - perhaps they don't fully know either. :-)

[mutantalbino]

It's the futures markets where they speculate on the price of oil and other commodities and buy contracts months ahead. They make money when they have a contract and something happens that makes the price go up. Subsequently, they circulate rumors and overreact to news. Just like the rice shortage, they circulated rumors that there was a shortage but their wasn't one. Nervous people began buying rise and hording it which depleted the supply chain, prices went up and they made money.

[sracings]

ships in the gulf carry the oil

[Andrew K]

war costs money .usa needs lots of money to protect the oil barrons comoddities.