Gas prices poised to jump after US attack on Iran, but don’t expect a big spike
NATHAN BOMEY | USA TODAY | 32 minutes ago
American gasoline prices could rise in the coming weeks over fears about the potential fallout from the U.S. killing of an Iranian military leader. And those price hikes could escalate if the conflict intensifies.
But with oil production strong in the U.S. and elsewhere, the effect on fuel is likely to be muted in the near term.
“We’re talking about making a nickel of an impact on gas prices over the next week,” says Patrick DeHaan, head of petroleum analysis at fuel-savings app GasBuddy.
To be sure, the American airstrike that killed the Iranian general, Qassem Soleimani, while he was visiting Iraq could trigger a chain of events that would have a greater effect on the price of gas.
“The severity of their response is what’s going to impact gas prices most,” DeHaan says. “This could really escalate from here on out.”
If oil jumps more than $5 a barrel and gasoline follows it higher, the increase in prices could have a “pretty significant impact to consumers” says AAA spokeswoman Jeanette Casselano. Gas is made by refining crude oil.
U.S. oil futures prices rose3.7% to $63.44 at 9:51 a.m. ET on Friday.
The national average price of gasoline reached $2.59 on Friday, up 3 cents from a week earlier, according to AAA.
Traders are bracing for the possibility that Iran will retaliate by restricting the flow of oil in the Middle East or potentially attacking production sites.
