California drivers brace for possible gas price spike amid Middle East conflict

Iran war: Could gas prices go up?

Economists say it won't take long for gas prices to go up as the war in Iran goes on. Experts say for now, there is adequate amounts of fuel, but that could always change. 

LOS ANGELES - Rising tensions in the Middle East are fueling concerns about higher gas prices in the United States, including in Southern California. 

What we know:

Over 600 people, including six U.S. troops, are dead as fighting escalates in the Middle East.

The U.S. and Israel targeted Iran over the weekend, killing its supreme leader, Ayatollah Ali Khamenei. In response, Iran struck energy sites in the Gulf and attempted to close the Strait of Hormuz.

U.S. Central Command says the strait remains open. About 20% of the world’s crude oil flows through it daily.

World markets posted their biggest one-day gain in years on Monday and economists say it may not take long before gas prices follow.

RELATED: Iran operations continue; gas prices rise 11 cents overnight

Why you should care:

Experts say uncertainty in global oil markets is already driving concern about higher fuel costs.

"Whether they go up 50% wouldn’t be shocking to me. You know, especially if the conflict worsens and then other actors get involved. So it might actually go up a lot or it might not, it’s impossible to predict. It seems like it’s kind of inevitable, but you know, as much like these people here we’ll have to adapt to it," a leading economist said.

Economists say that while there is currently adequate fuel supply, the longer military action continues — or if it spreads to other oil-producing regions — the more likely it is that prices at the pump will increase.

If attacks remain localized and oil infrastructure is protected, the impact on gas prices could be limited. If the conflict spreads, costs could climb more sharply.

The president has the option of releasing oil from the strategic petroleum reserve, which holds 700 million gallons.

Local perspective:

At Union Oil on Hazeltine and Van Nuys, drivers were able to find regular gas for under $4 a gallon Monday, with many standing in line to take advantage of the lower prices.

Drivers said they are already carefully budgeting and shopping around for the best prices.

"If it’s going up even $1 a gallon, that increases the budget for what, like $17, $20 each time I fill up," one motorist said.

Many residents said higher gas prices would force them to cut back on discretionary spending, especially as they already face high rent and food costs.

"You know, the first thing that goes is the extravagance," another resident added.