Tensions between Israel and Iran could soon increase U.S. gas prices, experts warn.
HOUSTON — As tensions between Israel and Iran escalate, experts warn that the impact could soon be felt across the U.S., starting at the gas pump.
According to AAA, gas prices in Houston have already risen by three cents in just the last week. And analysts say prices could climb even higher in the coming weeks, possibly rising more than 30 cents a gallon by July 4.
The concern centers around oil infrastructure being targeted as both Israel and Iran exchange strikes. Damage has already been reported in Haifa, home to Israel’s largest oil refinery.
“They went after oil storage and oil refineries in those depots, as well as of course the targeting of gas facilities in Iran’s south,” said Behnam Ben Taleblu, senior director of the Iran Program at the Foundation for Defense of Democracies.
Energy analysts say the market reaction could remain limited if attacks avoid oil infrastructure. However, any escalation — especially involving key refineries or shipping routes — could worsen global supply issues.
“Any kind of conflict going on in the Middle East, or particularly if it escalates, is going to lead to rising oil prices, which will lead to inflationary pressures in the U.S.,” said Natasha Lindstaedt, professor of Government at the University of Essex.
One of the biggest risks? A disruption at the Strait of Hormuz, a key shipping channel for OPEC countries. Goldman Sachs warns that prolonged disruption there could push oil prices above $100 per barrel, which would significantly raise gas prices across the U.S.
The silver lining for Houston drivers is that gas prices had remained relatively mild before the latest conflict began. But if prices begin to spike, experts recommend using GasBuddy.com, which offers a gas station price heat map to help drivers find the cheapest fuel nearby.