Gas prices jump over 10 cents in a day, set to rise ‘very quickly’ as oil surges amid Iran war

Gasoline prices at the pump jumped on Tuesday in reaction to surging oil prices amid a widening Middle East war.

Over the past 24 hours the national average at the pump rose by $0.10 to nearly $3.11 per gallon, according to AAA data.

And drivers can expect even higher increases in the coming days as a jump in oil prices following the outbreak of conflict in the Middle East filters through to retail gas stations.

“It’s going to be very quickly,” Patrick De Haan, head of petroleum analysis for GasBuddy, told Yahoo Finance on Monday.

De Haan said the pump reaction to higher oil prices is “accelerating”, with the national average expected to rise another $0.10 to $0.25 per gallon over the next week or two, barring de-escalation.

Adding to the upward pressure, much of the country has already begun switching to cleaner, more expensive gasoline for the start of the spring driving season.

“The seasonality, along with the attacks on Iran, is surely going to lead most motorists to see higher gas prices here, not just over the next few days but really the next several weeks, if not two or three months,” De Haan said.

Read more: What an extended war with Iran could mean for gas prices

Oil prices jumped higher on Tuesday as markets responded to continued military action in the Middle East after the US and Israel attacked Iran over the weekend, and Teheran responded with retaliatory strikes in the region.

Shipping activity through the Strait of Hormuz, a critical chokepoint for the world’s oil flows, has stalled amid soaring war-risk insurance premiums, adding to upward pressure on prices.

Strategists warn energy prices could rise further the longer the conflict lasts.

“If vessel passage through the SoH [Strait of Hormuz] is restricted for 3 to 4 weeks,” this could drive Brent oil prices above $100 per barrel, JPMorgan analysts said on Monday. About 20% of global oil flows go through the strait.

Brent crude futures (BZ=F), the international benchmark, jumped 5% to $83 on Tuesday. Meanwhile, US benchmark West Texas Intermediate crude futures (CL=F) also extended gains from the prior session to hover above $76 per barrel.