Gas prices expected to climb as crude oil spikes amid Iran attack – NBC Los Angeles

Drivers could soon see higher prices at the pump as crude oil costs spike amid escalating tensions involving Iran, analysts say.

U.S. crude oil jumped 7% in early evening trading, while Brent crude, the international benchmark, climbed 8%. The surge follows an already sharp rise in oil prices, which had increased 17% this year before the weekend’s gains.

Financial analysts said the attack on Iran could disrupt oil supplies in the Middle East because shipping through the Strait of Hormuz could be unsafe for cargo ships. The narrow waterway along Iran’s southern coast is a critical transit route, with about one-fifth of the world’s oil supply passing through it each day.

Experts say a closure or significant restriction of the strait would be among the worst-case scenarios for global oil markets.

“This will quickly translate into higher prices at the pump for American drivers,” said Christine Romans, senior business correspondent for NBC News. “Looking at it this way, a $1 rise in crude oil prices generally means up to two and a half cents more for a gallon of gasoline. So, quick math, a $10 spike in oil would be up to 25 cents more for a gallon of gasoline.”

Some drivers told NBCLA they are already struggling with current fuel costs, adding it was already difficult to make ends meet.  

Victoria Jensen, an Uber driver, said higher gas prices is going to cut into her profit and make it harder to pay her other bills.

“Hugely, because a lot of times the work is slow and when the prices are really high, that just makes it a lot harder for us to make money for ourselves, for our cost of like, rent, other bills,” Jensen said.Analysts warn that higher gas prices could stick around for a while, but how long they last will depend on how the conflict in Iran develops.