Gas, diesel prices soar as escalating overseas tensions rattle oil markets

PHOENIX - Global energy markets are destabilized and gas prices are soaring as attacks involving Iran, Israel, and the U.S. drive up the price of oil. While the impact is widespread, those who drive for a living are feeling the brunt of the increase.

By the numbers:

Experts warned Monday that prices could climb 10 cents by nightfall and 30 cents higher by the end of the week. Diesel prices are expected to rise at double that rate. At local truck stops, drivers are seeing triple-digit totals at the pump just to fill a single tank.

Local perspective:

At a Love’s Travel Stop, diesel cost $4.90 a gallon on Monday. What used to be a $300 to $400 fill-up has ticked up to much higher totals. One driver’s tank reached $762.

"135 gallons is like $635. And that’s not even a full tank," one driver said. Another noted their total reached $625 while the pump was still running.

Big picture view:

Gas prices have jumped around 14% following recent military strikes. Iran is a major oil producer, and 20% of the global supply of gas travels through the Strait of Hormuz, where oil tankers now face the risk of being targeted.

"Now this is not the Russian situation of 2022," said Patrick De Haan, head of petroleum analysis at GasBuddy. "Many situations we’ve seen have not risen to the magnitude of what we’re seeing today."

According to GasBuuddy, some of the price increases are attributed to seasonal changes, such as the switch to the more costly summer-blend gasoline. However, international tensions are exacerbating the issue. Diesel is seeing a sharper impact following a drone attack on an oil refinery in Saudi Arabia.

"I actually filled up last night because I thought they were supposed to go up this week," one driver said. 

What they're saying:

Experts say gas prices could rise between 10 and 30 cents over the next week, while diesel could jump between 25 and 50 cents. Like truck drivers, Uber and Lyft drivers must pay for their own fuel with no additional compensation from their companies.

The day began with a national average just below $3.50 per gallon. Experts expect that average to climb to between $3.75 and $3.95 depending on how the situation unfolds. Diesel prices are expected to accelerate toward $5.

Dig deeper:

"You should check it up in Cali," one driver said. "Its super high. You go to Beverly Hills—$7, $6.20."

The impact extends beyond the gas station. Depending on the duration of overseas tensions, air travel could also become more expensive.

"This will also impact every product derived from crude oil, including things like jet fuel," De Haan said.

What's next:

To stabilize the market, experts say the U.S. and other oil-producing countries need to secure the Strait of Hormuz, so ships feel safer traveling through the region. In the meantime, analysts describe the current price hike as a measured, temporary response to the conflict.