GasBuddy analyst Patrick De Haan on Monday cautioned against gas prices in the U.S. likely spiking as tensions between Washington and Tehran escalate over the Strait of Hormuz.
Diesel Prices Could Also Climb
In a series of posts on the social media platform X, De Haan said that the U.S. had reinstated its naval blockade on the Strait of Hormuz, which led to oil prices surging. “Gas prices will likely continue to climb as escalations continue,” De Haan said in the post.
In a separate post, the analyst predicted that “the national average price of gasoline will again reach $4/gal in the next 7-10 days, if not sooner.” He again pointed to rising oil prices in the global markets. “I’d expect price increases of 15-45c/gal (depending on price cycling state or not) in the next week or so,” the analyst said.
De Haan said that he expected Diesel prices in the U.S. to reach the national average of $5/gallon “by the end of this week,” saying that the wholesale diesel prices surged 25-28c/gal. He said the hikes could kick into effect as soon as this Friday.
Trump’s 20% Toll
Trump had, in a post on Truth Social, said that the U.S. plans to charge a 20% fee on vessels traversing the Strait of Hormuz. Following his comments, Iran’s Foreign Minister, Abbas Araghchi, said that the President was “absolutely right” in demanding compensation, but reiterated Iran’s role as the guardian of the Strait.
Meanwhile, Brett Erickson, a risk analyst at Obsidian Risk Advisors, dismissed the plan to impose a 20% fee on vessels as a sign that Trump was desperate.
Oil, Gas Prices
According to data collected by the American Automobile Association (AAA), the national average price for a gallon of gas was $3.8590 on Tuesday. Diesel was at $4.8820/gallon, up from Monday’s $4.8750/gallon, but down from last month’s $5.2190/gallon, the data said.
On the oil front, West Texas Intermediate (WTI) crude oil crossed $80/barrel, trading at $80.60/bbl at press time. Brent crude reached $86.62/bbl at the time of writing this article. Oil ETF United States Oil Fund (NYSE:USO) surged 3.03% to $121.36 during pre-market on Tuesday.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Photo courtesy: Below the Sky / Shutterstock
