HOUSTON – Gas prices could begin rising in Houston as global oil prices surge past $100 per barrel, driven by the ongoing war involving Iran and disruptions to oil production and shipping in the Middle East.
The conflict has raised concerns about the stability of energy supplies coming from the Persian Gulf, one of the world’s most critical oil-producing regions.
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Crude oil prices climbed sharply over the weekend, with Brent crude, the international benchmark, trading above $100 a barrel for the first time in more than three years. U.S. West Texas Intermediate crude also rose above $100. The spike came as the war expanded to areas that play a key role in producing and transporting oil and natural gas.
One major concern for energy markets is the disruption of shipping routes in the Persian Gulf. Roughly 20% of the world’s oil supply normally moves through the Strait of Hormuz, a narrow waterway between Iran and the Arabian Peninsula. Threats of missile and drone attacks have significantly reduced tanker traffic through the region, slowing the flow of crude oil to global markets.
The conflict has also affected production across the region. Several major oil producers, including Iraq, Kuwait and the United Arab Emirates, have reduced output as storage fills up due to the difficulty of exporting crude. At the same time, strikes by Iran, Israel and the United States on energy infrastructure have added to fears that global oil supplies could tighten further.
Those global market pressures eventually affect drivers locally, including in Houston.
As crude oil prices increase, the cost of refining gasoline and diesel also rises, which can push prices higher at the pump.
Nationwide, the average price of regular gasoline recently climbed to about $3.45 per gallon, roughly 47 cents higher than a week earlier, according to AAA.
Houston sits at the center of the U.S. energy industry and is home to major refineries and oil companies, meaning global oil swings can quickly ripple through the region’s economy and fuel markets. Analysts say prices at gas stations may fluctuate in the coming weeks depending on how long the supply disruptions last and whether global oil production stabilizes.
Federal officials say the spike may be temporary. U.S. Energy Secretary Chris Wright said recently that gasoline prices could drop back below $3 per gallon once markets adjust, suggesting the current disruption could last weeks rather than months.