Oil and Gas Prices Expected to Rise as Iran Strikes Threaten Global Supply and Strait of Hormuz

Energy analysts are warning that oil prices could surge as military strikes involving Iran continue, raising concerns about higher gasoline prices and broader economic impacts.

Oil markets have already been reacting to tensions in the region. Brent crude, the global benchmark, climbed ahead of the strikes and could jump further depending on how long the conflict lasts and whether global oil supply routes are affected.

At the center of the concern is the Strait of Hormuz, a narrow waterway off Iran’s southern coast that serves as one of the world’s most important oil transit routes. Roughly one-fifth of the world’s daily oil supply moves through the channel. Any disruption — or the threat of closure — could quickly trigger a global energy shock.

Iran itself plays a major role in global oil production and holds some of the world’s largest proven reserves. Analysts say even limited interruptions to Iranian exports could ripple across international markets, forcing countries that rely heavily on Middle Eastern oil — especially China and India — to compete for alternative supplies.

That competition would likely push prices higher worldwide. Experts estimate crude oil could rise by several dollars per barrel in the near term, with the potential for much larger spikes if shipping routes or major production facilities are damaged.

Consumers could feel the effects quickly at the pump. National gasoline prices have recently hovered near multi-year lows, but sustained disruptions in supply could reverse that trend and contribute to higher inflation.

While OPEC and its allies have announced modest production increases, analysts say those moves may not be enough to offset the risks posed by escalating conflict.

Explore: NBCPalmSprings.com, where we are connecting the Valley.