What's next for oil and gas prices as Middle East tensions heat up?

abcnews.go.com:

Oil prices climbed this week as unrest in the Middle East escalated

Oil prices climbed this week as tensions in the Middle East escalated. Iran launched missiles at Israel and the Israelis threatened retaliation, raising the possibility of a disruption to the flow of oil from the region. A jump in oil prices automatically spurs fear of a spike in gas prices, but experts see reasons that may not happen.

Here's a look at the current situation and the outlook for oil and gas prices:

Oil prices rose than $6 per barrel (5.47 euros) this week and prices at the pump moved higher as well. The average price for a gallon of gas rose 5 cents from last week. Any major escalation of tensions in the Middle East conjures up memories of the oil embargo that followed the start of the Yom Kippur war in 1973, which quadrupled oil prices.

However, the global supply of oil has been altered radically since the 1970s, with the U.S. becoming the world's largest oil producer. Months of war between Israel and Hamas and Hezbollah, two Iranian proxies, did little to boost prices for OPEC and its 12 oil-producing nations. Only the possibility of a direct confrontation between Israel and Iran moved the needle.

U.S. gas prices typically rise along with crude because the price of oil makes up half the cost of a gallon of gasoline.

The national average for gas has risen to about $3.18 per gallon, according to AAA. But that’s still 13 cents less than a month ago and 60 cents less than a year ago. The record national average high of $5 per gallon was reached in June 2022.

“Despite the threat of war and a hurricane season that is still percolating, domestic gasoline prices are edging lower,” AAA spokesperson Andrew Gross said in a statement on