Gas prices are set to rise amid U.S.-Israeli war with Iran. Here’s what you could pay at the pump.

Gas prices in the United States are expected to rise as a result of escalating tensions between the United States and Iran. The recent U.S.-Israel attacks on Iran have caused oil prices to spike, with West Texas Intermediate crude reaching $71.19 per barrel and Brent crude surging to $79.31 per barrel, its highest point in over a year.

Experts predict that gasoline prices could increase sharply this week, with GasBuddy petroleum analyst Patrick De Haan forecasting a potential rise of up to 30 cents per gallon by the end of the week. Gas prices in the U.S. have already seen a gradual increase this year, with prices averaging around $3 per gallon, 20 cents higher than at the beginning of January.

Consumers should brace for gradual price hikes at the pump, as low-priced stations are likely to raise their prices first and more visibly. States such as Illinois, Indiana, Michigan, Ohio, and Texas have already seen gas prices climbing on Monday.

Despite the anticipated increase in gas prices, consumers can take some relief in the fact that prices are still more than 7% lower than they were a year ago. Additionally, Energy Secretary Chris Wright has mentioned the potential impact of fresh oil imports from Venezuela, which could help keep gasoline and diesel prices down.

However, economists warn that the rise in oil prices could reignite inflation in the U.S., as oil prices affect everything from transportation to manufacturing costs. Nigel Green, CEO of investment advisory firm De Vere Group, highlighted that higher oil prices could lead to increased transportation, logistics, and manufacturing input costs, ultimately impacting consumer prices.

The Federal Reserve may also delay lowering interest rates if inflation rises due to higher oil prices. While the Fed is expected to keep its benchmark rate steady at its next meeting in March, economists predict a possible rate cut by mid-year in June.

In conclusion, American motorists should prepare for higher gas prices in the coming days as a result of geopolitical tensions and spiking oil prices. While the situation is still unfolding, consumers may need to adjust their budgets to accommodate the potential increase in fuel costs.