Gas prices will soon rise if oil rises during the Iran war

Gasoline prices rose to just under $3 a barrel on Monday as oil prices soared amid the broader Middle East conflict.

The national average at the pump rose to just over $3 per gallon, up about $0.01 from Sunday.

Motorists can expect to see a significant jump in fuel prices in the coming days after a scramble to filter through retail gas stations in the Middle East began this weekend.

“It’s going to be very fast,” Patrick DeHaan, head of petroleum analysis for GasBuddy, told Yahoo Finance.

DeHaan predicts that prices could rise by $0.10 to $0.30 per gallon this week. Adding to the pressure, much of the country has already started switching to cleaner, more expensive gasoline to kick off the spring driving season.

“The weather, along with the attacks on Iran, will certainly cause many motorists to expect higher gas prices here, not just in the next few days but actually in the next few weeks, if not two or three months,” DeHaan said.

Oil prices rose sharply on Monday as markets responded to US and Israeli attacks on Iran, following retaliatory strikes in the region.

Shipping activity through the Strait of Hormuz, a key point for world oil flows, has effectively stalled amid rising war risk insurance, adding upward pressure on prices.

Strategists warn that energy prices could rise further if the war drags on.

“If shipping through the Strait of Hormuz is restricted for 3 to 4 weeks,” it could push Brent oil prices above $100 a barrel, JPMorgan analysts said Monday. About 20% of the world’s oil flows through the strait.

Brent crude futures (BZ=F), the global benchmark, rose 8% to $79. Meanwhile, U.S. benchmark West Texas Intermediate crude futures (CL=F) rose more than 7% to around $72 a barrel.