War creates uncertainty — particularly when it’s a Middle East war and the focus is on oil and gasoline prices.
On Monday, two days after the United States bombed three nuclear sites in Iran, Americans woke up to higher gas and oil prices compared to a week ago.
The average price of a gallon of regular gas in Florida on Monday was $3.10 — 15 cents higher than on June 16, according to travel club AAA’s weekly gas price update.
By Monday afternoon, the price for a barrel of West Texas International crude oil had tumbled by more than $5 to $68.25 as traders downplayed risks that Iran would try to block the Strait of Hormuz, a crucial checkpoint through which a fifth of all the world’s oil flows. [cq comment=”
The decline accelerated after reports indicated that Iran’s first attempt to retaliate by lobbing missiles toward a U.S. base in Qatar failed to cause any casualties.
Earlier in the day, President Trump posted a demand on Truth Social that “everyone” keep oil prices down or they would play “into the hands of the enemy.”
In a blog posted on Monday morning, Patrick De Haan, head of petroleum analysis at GasBuddy.com, noted that the national average gasoline price increased by 10 cents over the past week over uncertainties stemming from the skirmish that was then limited to Israel and Iran.
The U.S. entry increased the likelihood of a “continued steady climb in prices” that he predicted could reach 7 to 15 cents this week, while diesel fuel could jump by 10 to 20 cents.
“That said,” De Haan wrote, “I do not expect the apocalyptic spikes being circulated by some so-called influencers on social media — many of which are wildly inaccurate.”
He added that his forecasts “remain fluid and could shift quickly depending on global developments.”
So far this year, WTI crude prices have ranged from a high of $78.71 on Jan. 15 to $57.13 on May 5.
Gas prices on Monday averaged $3.12 in Broward County, $3.25 in Palm Beach County and $3.11 in Miami-Dade County — all down a cent or less from Sunday, AAA reported.
GasBuddy’s monitors reported plenty of places in Broward and Palm Beach counties where motorists were still finding regular gas for less than $3 a gallon on Monday, including several stations along State Road 7 in Lauderdale Lakes and Lauderhill and Mobil at 16961 Miramar Parkway, in Miramar.
In Palm Beach County, the lowest price for regular gas was $2.85 at Rocket Fuel, at 100 N. Federal Highway in North Palm Beach.
Miami-Dade County’s lowest price was $2.69 at Marathon at 2755 NW 119th St. in Westview.
Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.
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