What Iran’s conflict could mean for Idaho’s gas prices

IDAHO FALLS, Idaho (KIFI)– Gas prices in Idaho are on the rise, and while increases are typical this time of year, experts say tensions involving Iran are adding extra pressure to the market. Analysts warn prices could climb past the three-dollar mark in the coming days as global oil markets react to growing instability overseas.

Oil prices recently moved higher after concerns grew that conflict in the Middle East could slow or block shipments through the Strait of Hormuz, a critical shipping route for crude oil coming out of Iran. The strait is one of the most important oil transit chokepoints in the world.

Short term, Matthew Conde with AAA Idaho says drivers could see prices rise five to ten cents per day.

While gas prices typically trend upward in the spring due to increased travel demand and the switch to more expensive summer-blend fuel, Conde says the situation involving Iran has accelerated that seasonal climb.

"When there is a shortage anywhere in the world, we're also interconnected that it's only a matter of time before it affects the global market. And so there may be a peak for a while. If things resolve fairly quickly, then it may it may be short lived. But regardless of that, the overall trend heading into the spring is that upward trend," Conde said.

The silver lining for Idaho drivers is that some of the geopolitical risk had already been factored into oil prices, helping prevent what could have been a sharper spike. Gas in Idaho is still about 20 cents cheaper than it was this time last year and the state currently ranks #14 most expensive fuel markets in the country.

Experts say seasonal demand combined with global uncertainty means drivers should be prepared for prices to continue climbing in the weeks ahead.