- Oil prices are climbing amid Iran tensions, pushing gas higher.
- AAA says the U.S. average recently jumped to about $3.25.
- Some forecasts warn gasoline prices could stay high for months.
Gas prices are already starting to climb as tensions in the Middle East push oil markets higher. The increases haven’t been dramatic yet, but depending on how the war with Iran unfolds, they could keep creeping up for quite some time. How bad would it have to get for those of you with gas cars to switch to an EV?
According to AAA, the U.S. average recently climbed to about $3.25 per gallon after a sharp weekly jump, as crude markets react to the fallout from the U.S.-Israeli conflict with Iran. And there’s a good chance this is only the beginning.
Analysts say the biggest risk is disruption to oil shipping through the Strait of Hormuz, one of the most important energy choke-points in the world. If supplies stay tight, gas prices could keep rising for weeks or even months.
More: Global Oil Shock Triggers The Largest Ever Strategic Reserve Release As Gas Prices Surge
Recent forecasts tied to the ongoing war suggest crude could stay elevated for a while. The U.S. Energy Information Administration expects oil to remain high enough to push U.S. gasoline prices higher in 2026, even if the conflict cools down, with average prices projected around the mid-$3 range.
In more extreme scenarios, oil staying near or above $100 per barrel for an extended period could drive inflation higher and make everyday driving significantly more expensive. In fact, Reuters reports that some big names in the banking and finance industry worry that it’ll climb to $120 a barrel. Some analysts think $150 a barrel is possible.
For reference, when oil prices hit $130 a barrel in 2022, gas prices reached about $5 per gallon. At $150 or more, we could see $6 or $7 a gallon fuel prices. That’s exactly the kind of situation where EVs suddenly start looking a lot more appealing, even to those who wouldn’t normally consider buying one.
So where do you draw the line? If fuel prices keep climbing with no sign of relief, when would you finally consider parking the gas-powered car and moving to an EV?
