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Gas prices rise
Escalating U.S.-Iran military tensions are driving up gas prices in Central Florida, with AAA reporting a gallon of regular gasoline averaging $3.95.
In Cincinnati, Ohio drivers may soon be paying more at the gas pump as rising tensions between the U.S. and Iran push crude oil prices higher, with experts warning gasoline price increases that could rise to more than $4 a gallon and diesel rising to over $5 per gallon.
The Ohio state average is between $3.70 to $3.75 cents per gallon, and Dean Morgan, spokesperson for AAA Club Alliance, said crude oil prices had climbed back up again with uncertainty, moving from around $60-$68 per barrel last week to around $70-$78 per barrel this week.
In Philadelphia, Northeast Philadelphia drivers are paying sharply more at the pump as renewed tensions between the United States and Iran push oil prices higher, with the citywide average for a gallon of regular gasoline reaching $3.99 this week, according to AAA.
Jana Tidwell of AAA tied the risk to the Strait of Hormuz, saying, "If that is shut down, we are just going to see the price of oil increase."
Strait of Hormuz
The Strait of Hormuz is central to the price pressure, with one report saying the U.S. military began establishing another blockade in the Strait of Hormuz, a shipping channel that handles roughly >.
That same report quoted Tidwell warning that if the strait is shut down, oil prices would rise, and it also said President Donald Trump on Monday announced the U.S. would impose a 20 percent fee on all cargo traveling through the strait.
In Cincinnati, Dean Morgan said impacts on the Straight of Hormuz could mean longer issues and higher prices, adding, "Impacts on the Straight of Hormuz, depending on how long that goes, we could see longer issues and higher prices."
The Guardian reported that the average price of diesel fuel in the US has increased again to more than $5 a gallon, and the average price of gas is almost $4, returning to their highs before the June memorandum of understanding between the US and Iran.
The Guardian also said, "The renewed diplomatic uncertainty and new US and Iranian airstrikes are driving prices higher both at the pump" and on international wholesale markets.
What comes next
MarketWatch framed the situation as a potential end to the recent price break, saying retail gasoline prices have crept up as the U.S. and Iran again vie for control of the Strait of Hormuz and that some see a return to an average of $4 or more a gallon.
“Brace for $4 gas again: How U”
In a separate report, Al-Borsa said the national average price of gasoline in the United States stood at $3.84 per gallon, up 9.8 cents from last week and up 22.2% year over year, and it quoted GasBuddy analyst Patrick De Haan predicting the national average would reach $4 per gallon within seven to ten days if current conditions persist.
Al-Borsa also said the diesel average could rise to $5 per gallon by the end of the week, and it described shipping data showing the number of oil tankers passing through the Strait of Hormuz had fallen to its lowest in two months.
Moody’s Analytics chief economist Mark Zandi warned that continued disruptions to navigation in the Strait of Hormuz for several weeks would deplete already-low global oil inventories, potentially causing sharp rises in oil and fuel prices and an actual shortage of supply worldwide.
In the Guardian’s account, AAA spokesman Robert Sinclair Jr. said, "The impact is universal," and added that "Everything gets to the retail consumer by diesel-burning truck."
