Oil prices are surging as the conflict between Israel and Iran escalates, raising alarm bells for consumers worldwide. Following a series of missile strikes targeting oil infrastructure, experts warn of significant disruptions in the oil market, with prices already climbing. Just last week, Israel launched a preemptive strike on Iranian nuclear facilities, raising concerns over retaliatory attacks that could cripple oil supplies.

As tensions mount, oil prices spiked by $9 per barrel before settling at an increase of over $5. However, the situation took a dramatic turn on Sunday when Iranian missiles struck an Israeli oil refinery, prompting Israeli retaliation. This escalation has sent shockwaves through the market, with analysts predicting further increases in gas prices.

Dr. Peter Earl from the American Institute for Economic Research cautions that Americans should brace for higher gas prices, estimating a rise of about 10 cents per gallon in the coming weeks, with diesel prices potentially increasing by 15 to 20 cents. If attacks on oil facilities continue, prices could rally by another $5 per barrel, pushing Brent crude to $80.

The conflict’s implications extend beyond immediate price hikes. Rising energy costs threaten to stoke inflation, complicating efforts by the Federal Reserve to manage interest rates. With the Fed meeting soon, the impact of these geopolitical tensions on the economy is under scrutiny.

While Iranian oil exports are currently limited due to sanctions, any disruption in supply chains, particularly through critical chokepoints like the Strait of Hormuz, could lead to catastrophic price surges, potentially hitting $100 per barrel. The world is watching closely as the situation unfolds, with consumers already feeling the pinch at the pump. The urgent question remains: how high will prices climb as this volatile conflict continues?