US-Iran Tensions Fuel Sharp Spike in Oil Prices Amid Global Supply Chain Disruptions

The escalating tension between the US and Iran has sent shockwaves through the global energy market, causing sharp increases in oil prices. Analyst Patrick De Haan from GasBuddy notes that supply chain disruptions have led to unprecedented hikes in gas and diesel prices at pumps across the US.

Gas prices are expected to continue rising over the next week or two, potentially by 5-15 cents per gallon, according to De Haan. The current national average price of gas has crossed $4, with diesel averaging $5.2780 per gallon.

De Haan emphasizes that de-escalation is the only way to lower costs, stating that 'beyond [the next week or two], it’s contingent on any developments between the US and Iran.' He also points out that Ukraine's attacks on Russian oil refineries have had a significant impact, causing Russia to block diesel exports.

The US Strategic Petroleum Reserve (SPR) is set to continue falling until at least late August, potentially reaching 280 million barrels. De Haan warns that if the geopolitical situation continues to deteriorate, the US could be left with limited tools to address higher prices.