According to Reuters and the Associated Press, natural gas prices climbed after the United States and Israel launched attacks on Iran, causing global oil prices to rise sharply.
AA tracks US gas prices weekly
According to AAA, “The national average price per gallon of regular gasoline has increased nearly 27 cents since last week to $3.25. Conflict in the Middle East has caused crude oil prices to rise to the mid-$70/barrel range. The latest increase puts the national average price at the same level as early April 2025.”
Natural gas prices traditionally rise in the spring, but the increase is higher than normal.
“Gasoline prices typically rise in the spring as gasoline demand increases and summer blend production begins. The last time the national average price saw a similar weekly increase was in March 2022, when the Russia/Ukraine conflict broke out,” National Auto Service shared.
Gas prices not only affect what we pay at the pump; They also impact many supply chains and commodity costs. This could drive up prices for many items.
Costco Chief Financial Officer Gary Millerchip expressed optimism about the weakening impact of inflation during the Warehouse Club’s second-quarter earnings call.
“While egg price deflation is expected to continue to be a headwind for food and grocery sales for the foreseeable future, we saw significant egg volume and market share growth due to our strong value proposition. Headline inflation declined slightly in the second quarter as we saw lower food, grocery and fresh food inflation, with deflation in produce, eggs and dairy driving this trend,” he shared.
However, the news is not all positive.
“This was partially offset by a slight increase in non-food inflation,” he added.
Milchip also issued a warning in light of Iran’s current military operations.
“The supply chain was also relatively stable in the second quarter, and our merchants are happy with current inventory positions heading into the spring. That said, as we look at the remainder of the fiscal year, the situation in the Middle East may impact fuel costs and shipping schedules if instability in the region continues,” he shared.
“Given current market conditions, if oil prices continue to rise and supply disruptions persist, the national average gasoline price could climb to $3.50 to $3.70 per gallon in the coming days,” GasBuddy analyst Patrick De Haan told Reuters.
The United States has reduced its dependence on foreign oil but is still subject to global demand.
