War With Iran Could Lead to Higher Prices at the Gas Pump

War has again come to the Middle East. As bombs continue to rain down on Iran, the nation is promising to hit the rest of the world in the pocketbook. Get ready for higher gas prices as the conflict with Iran escalates.

Price of Crude Oil Goes Up

The BBC reports that global oil prices have risen to above $80 a barrel after three oil tankers were attacked near the Strait of Hormuz over the weekend. The Strait controls nearly 20% of the world's oil supply, and any disruption could cause havoc with crude oil prices, something that Americans and citizens in other countries would feel at the gas pump. Natural gas prices have also jumped by 25%, according to the BBC.

How High Will Oil Prices Go?

Markets don't like uncertainty. The BBC warned that prolonged conflict could cause oil prices to surge to over $100 per barrel. That would cause gas prices to soar and even have an effect on inflation and interest rates. Others say that traffic through the Strait of Hormuz could return to normal levels, which would certainly help oil prices level off. The BBC reports that OPEC+ nations have agreed to increase their output by 206,000 barrels per day to help cushion any price increases.

Oil Tankers Attacked by Iran

The BBC reports that three oil tankers from the US and UK were attacked by Iran's Islamic Revolutionary Guard Corps. Neither country has commented on the attack.