Oil and gas prices spike amid U.S. war on Iran
Pain at the pump as war on Iran rages on
President Trump says hes considering waiving certain oil sanctions on other countries in an effort to keep gas prices down. At one point on Monday, oil prices spiked to more than $110 a barrel, the highest price since the pandemic.
MILL VALLEY, California - The U.S.-Israeli war on Iran is proving to be hard on American consumers' wallets when it comes to pain at the pump.
The Trump administration says this price spike will lead to steadier lower prices, not aggravated inflation.
War in Iran: How it affects gas prices
But at a discount gas station, we found only one believer in that.
"We're putting an end to all of this threat once and for all, and the result will be lower oil prices, oil and gas prices for American families," said President Donald Trump.
On Monday, Brent crude oil spiked to $109 a barrel, settling back to $85, but well above the pre-war mid-to-high $60 range.
"I think it makes it quite clear that there's tremendous uncertainty about how this war is going to go, how long it's going to take and how it's going to resolve," said Professor Severin Borenstein, Energy Economist at UC Berkeley Haas’ Energy Institute.
Worldwide Ocean Shipper MSC imposed emergency fuel surcharges on container shippers. "The problem is when those prices start to feed through to goods and services. And, at some point, they start to raise prices," said Professor Borenstein.
Pain at the pump
Last Wednesday, at this Mill Valley Arco gas station, last Wednesday, gas was $4.06 a gallon. By Monday, it went up to $4.92 a gallon. That is an 86 cents a gallon difference. $12 extra for a full tank of gas.
We met one man who got rid of his truck for a Toyota Corolla.
"Eighty dollars every two days to fill up my tank. So, it was too much money for me to spend in a week, so I had to get a new car that was like cheaper gas. And you see, $43 full," said Arco customer Banson Chavez.
"I'm an Uber driver and you don't make much to begin with and when fuel chisels away at what little profit you're making, it becomes a joke after a while," said Arco customer Douglas Black.
Penny Fisher owns a gas-sipping Chevrolet Spark. "All I know is that I have to use my car to get to work, so I have to budget in the seven extra dollars per fill-up," said Arco customer Fisher.
The other side:
"I trust in our president and I think prices are going to come down, and it's just a matter of time," said Pamela Kelley.
Time for that EV?
San Rafael's McCoy Auto Brokers says electric vehicles may be a big boost.
"In the last 45 days there has been an increase in maybe demand or interest in EVs and plug-ins, I would say. In the last week, for certain, people have wanted to explore that as kind of an option," said Rich Gasaway owner of McCoy Auto Brokers.
All anyone can do is wait and watch. "If this war settles down, you'll probably see it going down again. But I don't know how much will go down then," said Arco customer Greg Ball/Arco customer.
Throw in high gas taxes, California's expensive special blend of gasoline, not enough refineries here, and high cost to get it from outside the state and you're paying for it.
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Trump says 'excursion' in Iran will be 'short-term'
The U.S.-Israeli attack on Iran continues for a 10th day, as both countries vow to press ahead with a military operation that appears to have no end in sight.