Iran war adds to rising fuel prices
The war in Iran is contributing to higher fuel prices in the United States.
GasBuddy’s head of petroleum analysis, Patrick DeHaan, says prices were already going up before the U.S. and Israel started bombing Iran. He says the prospect of war added to the increases.
“The president had alluded to potentially dealing with Iran before the attacks,” DeHaan says. “So, oil prices had already been working on pricing in the risk of said attack.”
But war was not the only factor.
“Much of the country has already started to transition back toward cleaner, more expensive summer gasoline,” DeHaan says. “Refineries are starting maintenance before the summer driving season.”
He also says demand us rising as students hit the road for spring break and warmer temperatures return.

GasBuddy’s daily price index shows the average price in Michigan before the war was a bit less than $3 for a gallon of regular unleaded gas. By March 4, it had risen to $3.21.
Michigan prices work differently
DeHaan says daily prices in Michigan don’t go up or down based solely on market factors.
“What happens in Michigan is prices usually make a big jump, then trickle down for a matter of several days until stations have no more room to lower prices,” he says. “Then they jump back up again.”
Commuters aren’t the only ones paying more. Diesel fuel prices are up, too. DeHaan says a drone attack on a large diesel refinery in Saudi Arabia could cause prices to rise more dramatically than that of gasoline.
“It may climb another $0.40 to $0.80 a gallon over the next several weeks,” he says. “That will impact truckers very quickly as stations start to adjust their prices.”
Dire straits? Not yet
DeHaan is also watching the situation in the Persian Gulf, where Iran has threatened attacks on vessels in the Strait of Hormuz.
“That’s extremely problematic because 20% to 25% of the world’s daily oil supply needs to flow through the strait,” he says. “Until that is solved, oil prices may continue to move higher, along with gasoline, diesel, jet fuel, and other prices.”
But DeHaan says consumers should not panic. He does not expect historic oil or gasoline prices.
“Americans have seen far more significant spikes and far higher prices before,” he says.
GasBuddy tracks prices at more than 1,700 gas stations in metro Detroit and updates them in real time every five minutes.
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