This browser does not support the Video element.
War in Middle East escalates as oil prices spike
Air strikes continue across the Middle East as the war with Iran enters its second full week. Oil prices are rising amid concerns over global supply disruptions. Meanwhile, funeral plans are being made for Sgt. First Class Nicole Amor of White Bear Lake was one of the first U.S. soldiers killed at the start of the conflict. FOX 9’s Bill Keller reports.
MINNEAPOLIS (FOX 9) - As the war against Iran continues to escalate, oil prices are spiking globally leading to higher gas prices in Minnesota and across the United States.
Oil price impacts global markets
The backstory:
A barrel of Brent Crude, the international standard, climbed to nearly $120 per barrel before dropping on Monday as the conflict involving the U.S., Israel and Iran escalates, including multiple strikes targeting oil and gas infrastructure in the region.
At the same time, the United Arab Emirates, Kuwait and Iraq have reduced oil production amid the near closure of the Strait of Hormuz, a critical passageway that carries roughly 20% of the world’s oil supply.
READ MORE: Oil prices spike as Iran war intensifies: What to know
President Donald Trump addressed the rising costs on Sunday, writing on Truth Social: "Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY!"
Average gas prices in Minnesota, across the US
By the numbers:
In the Twin Cities, gasoline prices have risen by 47.8 cents in the past week, averaging $3.34 per gallon, according to GasBuddy. Nationwide, prices are up 51.1 cents during the same period, bringing the national average to $3.45 per gallon.
AAA reports the national average slightly higher at $3.47 per gallon. In Minnesota, drivers are paying about $3.25 per gallon, with metro prices slightly above that at $3.33 per gallon, according to AAA.
Diesel prices are also climbing with the national average at $4.66 per gallon, up 88 cents in a week. In Minnesota, diesel averages around $4.45 per gallon, an increase of 77 cents over the same timeframe, according to AAA’s website.
What they're saying:
"In just a week, consumers have seen gasoline prices surge at one of the fastest rates in years after oil prices spiked following U.S. strikes on Iran and the effective closure of the Strait of Hormuz," said Patrick De Haan, head of petroleum analysis at GasBuddy. "With additional attacks across the Middle East over the weekend pushing oil above $100 per barrel for the first time in years, fuel markets are now rapidly recalibrating to the risk of prolonged disruption to global supply flows. As a result, gasoline prices in many states could climb another 20 to 50 cents per gallon this week, with price-cycling markets potentially seeing increases as early as today."
The latest gas price updates can be found on the AAA and GasBuddy websites.
The Source: This story uses information from previous FOX 9 reporting and data from GasBuddy and AAA websites.