Middle East conflict raises concerns over gas prices
The ongoing U.S.-Israeli war on Iran, which began in February 2026, has significantly impacted oil markets, with crude and gasoline prices rising sharply. Oil prices surged more than 40% for the year as of July due to heightened tensions, while gasoline prices were at $4.10 per gallon nationally—up nearly 30-45% from a year ago. Despite recent drone attacks in Egypt's Damietta Port and ongoing military activity by Iran against U.S.-allied forces, gas prices remained relatively stable on July 31. The Strait of Hormuz remains largely closed to tankers, with only two passing through the strait daily compared to over 120 before February. Analysts like John Kilduff predict continued volatility in August due to geopolitical tensions and potential disruptions from drone attacks elsewhere, such as Ukraine's strikes on Russian oil infrastructure. Oil stocks generally rose on July 31 except for ExxonMobil (XOM), which fell slightly.
Topics: gasoline_prices Middle East conflict oil_prices U.S.-Iran tensions