NC Gas Prices Rise Again as Global Tensions Impact Oil Markets

Gas prices in North Carolina increased for a second straight day as global oil markets react to rising tensions in the Middle East.

According to AAA, the average price for regular gasoline across the state climbed about 8.5 cents overnight Wednesday, bringing the statewide average close to $3 per gallon. In the Triangle, drivers are paying several cents more than $3. Prices have jumped roughly 25 cents per gallon since Saturday, when military strikes targeted Tehran, Iran’s capital.

Diesel prices have also surged. The statewide average rose another 18 cents Wednesday, reaching about $3.93 per gallon. That places diesel nearly 40 cents higher than it was just a week ago.

Across the United States, the average price of regular gasoline sits around $3.20 per gallon, the highest level since September and roughly 10 cents more than this time last year, according to AAA.

Oil prices worldwide have also been climbing. Between Friday and Tuesday morning, the cost of crude increased by about $10 per barrel.

How Global Tensions Play a Role

Iran plays a significant role in global oil production, but analysts say a major concern involves the Strait of Hormuz. The narrow waterway along Iran’s southern border connects the Persian Gulf to international shipping routes and carries about 20% of the world’s oil supply by ship.

With Iran threatening to target vessels traveling through the strait, some ships have reportedly avoided the area, raising concerns about disruptions to global oil flow.

President Donald Trump said Tuesday that the U.S. Navy could begin escorting oil tankers through the strait if necessary. He also suggested the government might offer special insurance protections to ease concerns for shipping companies.

“If that happens, it likely would lead to an improvement in the price of oil,” said Patrick De Haan, head of petroleum analysis at the website GasBuddy.com.

Read the full report here.