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The global oil market has a pressure point, and it lies in a narrow strip of water off the coast of Iran.
About one-fifth of the world’s oil passes through the Strait of Hormuz every day. When the warnings come amid tensions in the Middle East – and oil trade through the Strait of Hormuz is halted – traders are immediately at risk.
“If this strait is disrupted, prices will exceed $100 per barrel, potentially driving gasoline closer to $5 per gallon,” said Claudio Galimberti, chief economist at Rystad Energy (1).
Gas prices have already risen above $3 per gallon across the country, although Galimberti says further increases could push prices much higher (2).
“Iran is infinitely more pessimistic today … which means it is more willing to raise the cost of US intervention.”
For American drivers, this risk translates into something painfully simple: higher fuel bills.
Gas is not the only cost driver. When fuel costs rise — and historically, they do — the total cost of car ownership rises. Insurance premiums, maintenance, financing costs and daily driving costs are likely to increase.
While you can’t control the oil markets, you can Control how your family manages their car expenses.
Markets respond quickly to geopolitical volatility.
Any threat to shipping routes in the Persian Gulf could send oil prices soaring overnight, especially if traders believe supplies will tighten.
At the heart of this sensitivity is the Strait of Hormuz, a narrow waterway between Iran and Oman that serves as a crossroads for the world’s oil trade. About 20% of the world’s petroleum liquids and about one-fifth of all liquid natural gas flow through it every day (3).
Because there are few practical alternatives, even a sense of confusion can drive up gas prices. By 2025, analysts said that even a partial closure of the Strait of Hormuz would push Brent crude oil to $100 per barrel – and could rise above $110 if disruptions occur (4).
This kind of reaction is not new. From the Iran-Iraq war in the 1980s to the repeated tanker incidents in the Gulf in 2010, the pattern of history is consistent—oil markets are exposed to geopolitical risk even if physical supply does not change immediately (5).
Today’s situation reinforces these dynamics. With tensions raging across the region and threats to close or disrupt air freight routes, oil prices are likely to reach levels not seen in months (6). As a byproduct of crude oil, gasoline will follow suit.
Gasoline is one of the most visible examples of how global conflicts can hurt household budgets. For most Americans, fuel costs run into the hundreds of dollars per month for daily commuters (7).
And when fuel costs rise, they don’t rise in isolation. They collide with everything.
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Gas prices are volatile, but the main stressor for many American households is rising gas costs. everything All at once.
Right now, Americans are facing rising costs in many ways. Insurance premiums, car payments and routine maintenance costs are all on the rise. This is to say nothing of spending in other sectors, such as food.
It’s easy to see how a gas spike can expose a household where the budget has been stretched throughout the year.
The real question isn’t just about how to save an extra 10 cents per gallon—it’s whether your entire budget can absorb that shock without derailing your financial goals.
One of the quickest ways to reduce stress is to review fixed car expenses, especially insurance.
Insurance is usually the second largest recurring car expense after fuel. Still, many drivers stick with the same carrier for years without comparing rates, even with premium increases.
With fuel costs rising, it’s a good time to review any car-related expenses, especially your insurance coverage.
Even modest savings can make a difference. Deducting $50 to $100 per month from your premium can significantly offset pump costs.
If you haven’t compared rates in the last year or two, there’s a chance you’re paying too much.
According to Forbes, the national average cost of full coverage car insurance in 2025 will be $2,149 per year, or $179 per month (8). However, rates vary widely depending on your state, driving history and vehicle type.
Online insurance marketplaces allow you to enter your information once and get multiple quotes from competing carriers, so you can find the best rate quickly.
By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to make sure you’re getting the best deal.
In just two minutes, you can find rates as low as $29 a month.
Another option is Insurify – a digital comparison platform that allows drivers to compare quotes from dozens of insurers in minutes.
Insurify helps you take charge of your insurance buying journey with tools and insights that no one else has.
Insurify uses driver data and real-time rate information to match you with policies that match your profile, whether you’re looking for minimum coverage to cut costs or more comprehensive protection.
The potential savings are not small. If switching carriers saves you $75 a month, that $900 a year could help absorb the impact of rising gas prices.
When unexpected expenses strike, having a clear view of where your money is going can keep you from being blindsided.
A financial advisor can help crunch the numbers and create a budget even in a struggling global economy.
But hiring a consultant can be a lifelong commitment—one that can make or break your budget. This means that finding a counselor you can trust is extremely important.
This is where Advisor.com can help. The platform quickly connects you with a specialist near you for free.
Advisor.com does the heavy lifting for you, evaluating advisors based on track record, client ratio and regulatory background. Additionally, their network of trustees is legally required to act in your best interests.
Just enter a few details about your goals and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited to your needs.
Set up a free initial consultation today to see if they’re right for you.
Having a clear picture of where your money is actually going can help you budget appropriately. Budgeting tools can help you easily track and manage your car expenses.
By looking at the whole picture, you can identify patterns – maybe you’re driving more than you think, or your maintenance costs are running high.
Tools like Monarch Money allow you to categorize and monitor fuel costs, insurance payments, maintenance costs and loan payments all on one dashboard.
When prices go up, this view gives you a profit. You can adjust costs elsewhere, plan for seasonal fuel spikes or review transportation options before the costs spiral.
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If you’re a retiree living on a fixed income, every dollar counts.
When your income doesn’t adjust easily, the average increase in gasoline or insurance premiums puts pressure on your budget.
While a million dollar retirement fund sounds impressive, after taxes, a 4% withdrawal leaves you with only $40,000 a year. This amount does not go far in a world of rising costs and is quickly being eroded by health costs and market volatility (9).
Higher-level organizations like AARP can help with some living expenses. They offer discounts on almost everything – from prescriptions and dental plans to travel, entertainment and insurance.
As one of the most trusted organizations for older Americans, AARP not only offers money-saving benefits but also helps you make informed financial and health decisions.
AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.
Sign up with AARP today and get 25% off your first year.
Global energy markets may be reacting to events halfway around the world, but your household budget is not powerless.
While you can’t control the Strait of Hormuz, you can control how efficiently your car and your finances work at home.
Here are practical steps you can take now to reduce what you spend at the pump:
Carpool when possible. Even cutting back on one or two solo trips per week can significantly reduce monthly fuel costs.
Keep tires properly inflated. Under-inflated tires reduce fuel efficiency and increase wear. According to the US Department of Energy, proper tire pressure alone can increase gas mileage by up to 3% (10).
More efficient driving. Avoid high-speed and high-speed driving, which can significantly reduce fuel economy.
Use fuel tracking apps. Monitoring your fuel usage can help you identify patterns, compare fuel prices across stations and adjust habits before costs skyrocket.
Combine trips. Combining errands reduces cold starts and unnecessary mileage—a small change that adds up over time.
None of these tactics can eliminate the effects of rising oil prices, but they can create some breathing room.
When oil prices rise, the goal isn’t perfection—it’s flexibility. By reviewing your insurance, budgeting strategically and taking advantage of available resources and discounts, you can help keep all of your car expenses under control, regardless of what happens outside.
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mirror (1); Reuters (2); IER (3); Reuters (4); Notification of discovery (5); International News (6); JD Power (7); Forbes (8); investment (9); US Department of Energy (10)
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
