US Gas Prices Set to Soar as Global Oil Supplies Squeeze

Gas prices in the US are expected to surge significantly over the next 48 hours due to ongoing conflicts in Ukraine and Iran, which have led to a squeeze on global oil supplies. Tom Kloza, chief energy advisor at Gulf Oil, warned of 'staggering increases' at the pump for both gasoline and diesel fuel.

The average US price for diesel has already hit $6.30 per gallon, while gasoline prices have risen to $4.35 per gallon, according to Patrick De Haan, head of petroleum analysis at GasBuddy. He predicts that these prices will jump noticeably over the next two days, with diesel potentially reaching $6.60 per gallon in a few days.

The price hikes are particularly concerning for drivers in California, where gas costs $6.04 per gallon, and other states such as Washington, Hawaii, Nevada, Oregon, and Alaska, where prices exceed $5 per gallon. In contrast, Indiana has the lowest average gas price at $3.75 per gallon.

The usual seasonal drop in gas prices after Labor Day is also uncertain due to ongoing geopolitical tensions affecting oil supplies. Brent crude prices are trading at approximately $107 a barrel, up from about $70 before the start of the conflict.