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Phoenix gas average hits $4.10 per gallon as Iran conflict continues
Phoenix gas prices surged by 56 cents per gallon in the last week, as global oil disruptions are driving the spike. FOX 10's Taylor Wirtz learns how drivers could see impacts well beyond the pump.
PHOENIX - The U.S.-Israeli strikes on Iran are having its effect on drivers around the U.S., with gas prices skyrocketing since the war began on Feb. 28.
What we know:
Drivers are paying as much as $4.19 per gallon at the pump at stations. A Chevron on 7th Street and Portland in downtown Phoenix has diesel priced at $4.49 per gallon.
Gas prices were seen rising earlier this week with the growing conflict in the Middle East. According to AAA, Phoenix prices jumped about 56 cents per gallon in just the last week, with the average price on March 8 coming in at around $4.10 per gallon.
"Today was kind of a big sticker shock," Moses, a driver said.
On GasBuddy, the cheapest gas you’ll find in Phoenix is at the Arco on 27th Avenue and McDowell Road— costing drivers $3.63 per gallon with a credit card, or $3.53 for cash or debit. The highest end is close to the Chevron downtown at $4.19.
What they're saying:
Drivers are saying it was a tough pill to swallow at the pump, especially for one man who just got back from a California road trip where the prices were even higher— at $5.50 per gallon. But when he got back to Phoenix on March 8, he didn’t see the relief he was hoping for.
"It crushed me because when I was coming back from Cali, I thought it would be a lot different out here," London said. "But then I come back here, I’m like, ‘Wow, nothing’s really changed.' I mean maybe a little dollar and some change, but it’s still ridiculous, I don’t know what to do, it drives me nuts."
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Phoenix gas prices jump amid U.S.-Iran conflict
Gas prices have soared from just under $3 per gallon, to over $4 per gallon at many Arizona gas stations since the war started. FOX 10's Taylor Wirtz learns how the price jumps are causing concerns among drivers.
Dig deeper:
Given the escalating conflict with Iran, Oil Economist Ed Hirs doesn’t expect prices to go down for at least a month.
"If the straits were reopened tomorrow, you know, that's still a huge backlog of oil that has yet to get to the market and yet to get to refineries," Hirs said.
He added that the disruption of shipping through the strait of Hormuz, which carries 20% of the world’s oil, is to blame for the rising prices.
"The futures just a minute ago were saying $107 a barrel," he said. "If the strait remains closed for some significant period of time, we will see the price of oil get north of $150 a barrel. That, of course, would drive the price of gasoline up to more than double the current levels."
Why you should care:
Hirs says with the rising gas prices, the average consumer will be spending more on fuel, and probably less on restaurants and discretionary spending for the near future.
Truck drivers will also be more affected than others since diesel fuel is particularly costly right now.
The backstory:
The conflict began on Feb. 28 when airstrikes targeted Iran, killing their supreme leader and thousands of others in what is being dubbed "Operation Epic Fury." As of Sunday, seven U.S. service members have died, as the ongoing war seems to have no clear end in sight.
On March 8, Iranian state TV announced that Mojtaba Khamenei, the son of the late supreme leader Ayatollah Ali Khamenei, was named his successor.
What's next:
President Trump said on Truth Social that oil prices will "drop rapidly when the destruction of the Iran nuclear threat is over…" calling them a "very small price to pay for USA and world safety and peace."
The president has not yet said if he will tap the strategic petroleum reserve to help, but claims the prices will come down once the war is over.
The Source: This information was gathered from AAA, GasBuddy, and previous FOX 10 reports.