Gas prices surge as Iran conflict rattles global oil markets, pushing US crude above $90
Gas prices moved higher Friday as the conflict with Iran continued to roil global energy markets, pushing crude oil sharply upward and raising concerns about fuel supplies.
The national average price for regular gasoline rose to $3.32 per gallon on Friday, up from $3.25 on Thursday and $2.98 a week ago, according to AAA. Analysts say the increase reflects a surge in crude oil prices as geopolitical tensions intensify in the Middle East.
U.S. crude settled at $90.90 per barrel on Friday, a 12.2% jump on the day.
"Gasoline prices have been following crude prices higher as the closure of the Strait of Hormuz impacts supplies," Andy Lipow, president of Lipow Oil Associates, told FOX Business in an email.
Oil markets have been on edge since the U.S. and Israel launched strikes on Iran last Saturday. Iran has since moved to block tanker traffic in the Strait of Hormuz — a critical shipping lane that handles roughly 20% of global oil flows, according to Reuters.
Lipow said the disruption has prevented tankers from loading in Iraq, Kuwait and Saudi Arabia, forcing some production shut-ins.
Missile strikes have also hampered refinery operations in Israel, Bahrain and Saudi Arabia, tightening global gasoline and diesel supplies. Additional pressure is coming from China, which is limiting exports of refined petroleum products, according to Lipow.
"All this is leading to higher gasoline prices and the national average is likely to hit $3.50 per gallon [very] soon," Lipow said.
FOX Business contributor Phil Flynn said futures markets suggest pump prices could continue rising in the near term, depending on how events unfold.
"We're going to probably see some increases right now," Flynn told FOX Business. "That may slow if we get good news out of Iran."
Flynn noted that while prices have climbed quickly, the spike has not yet reached the levels seen during past geopolitical crises.
"I'm hopeful that we see the peak of gasoline next week," Flynn said. "The reason why I say that is I have a lot of confidence in the US military and Israel, and I really think Iran is on its last legs right now."
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President Donald Trump told Reuters on Thursday he was not concerned about the rise in prices.
"I don't have any concern about it," Trump told Reuters. "They'll drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit."