Gasoline prices rose to just under $3 on Monday as oil prices surged amid a widening Middle East war.
The national average at the pump rose to just under $3 per gallon, up about $0.01 from Sunday.
Drivers can expect to see steeper increases in the coming days as a jump in oil prices following this weekend’s outbreak of conflict in the Middle East filters through to retail gas stations.
“It’s going to be very quickly,” Patrick De Haan, head of petroleum analysis for GasBuddy, told Yahoo Finance.
De Haan predicts prices could increase by $0.10 to $0.30 per gallon this week. Adding to the upward pressure, much of the country has already begun switching to cleaner, more expensive gasoline for the start of the spring driving season.
“The seasonality, along with the attacks on Iran, is surely going to lead most motorists to see higher gas prices here, not just over the next few days but really the next several weeks, if not two or three months,” De Haan said.
Oil prices rose sharply on Monday as markets responded to US-Israel attacks on Iran, followed by retaliatory strikes in the region.
Shipping activity through the Strait of Hormuz, a critical chokepoint for the world’s oil flows, has effectively stalled amid soaring war-risk insurance premiums, adding to upward pressure on prices.
Strategists warn energy prices could rise further the longer the conflict lasts.
“If vessel passage through the SoH [Strait of Hormuz] is restricted for 3 to 4 weeks,” this could drive Brent oil prices above $100 per barrel, JPMorgan analysts said on Monday. About 20% of global oil flows go through the strait.
Brent crude futures (BZ=F), the international benchmark, jumped 8% to $79. Meanwhile, US benchmark West Texas Intermediate crude futures (CL=F) rose more than 7% to around $72 per barrel.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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