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Global oil prices have increased ever since President Trump along with Israel launched air strikes against the country of Iran. According to NBC, the immediate attack on oil-rich Iran caused US crude oil prices to rise by 6.5%, while international numbers increased by 8%. This happened when oil prices had increased by a whopping 17% in recent months.
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As of April 16, the national average price is $4.10 per gallon per aaaBut in some states it is much higher, including more than $5 per gallon in Washington and California.
What does this mean for gas prices right now
Oil prices are rising overall on fears that fuel supply lines will continue to be disrupted, particularly around the nearby Strait of Hormuz, which borders Iran, Oman and the United Arab Emirates. 20% of the world’s oil traffic passes through this strait.
what to expect this summer
Summer is a period of increased drive-time for many Americans – from Memorial Day or the Fourth of July through Labor Day, many people choose to hit the road for vacations, family trips, barbecues and more. The impact of this current conflict may extend into the summer months and beyond; However, since the situation is still unfolding, it is difficult to predict how severely gas prices will be affected by June, July and August.
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If the current conflict in the Middle East subsides, geopolitical risks to oil premiums will also reduce, with summer gas prices expected to fall much closer to last summer’s numbers (which were around $3.13 to $3.16 per gallon).
However, if this war with Iran were to prolong or spread to other countries in the region, crude oil prices could rise and, according to various reports, gas prices could rise to an average of $4.50, $5.00 or even $6.00 per gallon in a growing number of US regions.
ground level
Gas prices will rise due to the Iran conflict, if not resolved gas prices are likely to reach $5.00 per gallon by summer. How much this number will continue to increase and for how long, remains to be seen.
Editor’s note on political coverage: GOBankingRates is non-partisan and strives to objectively cover all aspects of the economy and offer balanced reporting on politically focused finance stories. You can find more coverage on this topic at GOBankingRates.com.