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Middle East uncertainty fueling gas prices
Ongoing attacks in Iran are raising concerns about economic uncertainty and higher gas prices, with experts warning costs could rise further if the conflict continues.
There are growing fears the ongoing attacks in Iran could lead to economic uncertainty and higher prices at the pump.
While you may notice gas prices have ticked up in some locations, economists say Californians could see prices on other products go up as well if the conflict in the Middle East continues.
While some feel things are already unaffordable, others say it's worth paying a little more right now.
Alex Jacquez, chief of policy and advocacy at Groundwork Collaborative, says oil and natural gas prices have surged in recent days.
"This is the quickest increase we've seen since Russia's invasion of Ukraine in 2022, and that's directly tied to the uncertainty about the length of engagement in global oil markets for the coming weeks and months," Jacquez said.
The national average for gas is right now over $3 a gallon.
While some worry gas will become unaffordable for families, some people in Westwood said they don't mind paying close to $5 a gallon.
"For me, saving millions of people is more important than paying one dollar more at the pump," said Julyet Berlen.
"For people who have huge commutes, it's just going to keep getting worse, and it's already high here," one person in Westwood told FOX 11.
Policy experts say when fuel costs go up, that means transportation costs will also likely go up.
"So you're seeing higher prices being paid for transportation. That's going to follow through to higher prices on the shelves," Jacquez said.
The conflict in the Middle East and the death of Iran's Supreme Leader are giving some Iranians hope for a regime change. But the military action is also shaking up the stock market and could impact local businesses in the long run.
"Businesses are going to be a little more hesitant about putting capital into an expansion or big hiring surge," Jacquez said. "And I think we're likely to see this very cautious, very low-profile approach from businesses, at least until there is more certainty on the global stage."
While some fear economic uncertainty and higher prices, some business owners with friends and family in Iran say it's worth riding it out if it can bring about peace and democracy.
"We don't have any other choice. We have to move on with the market," one person told FOX 11 on Tuesday.
Many residents say higher gas prices would force them to cut back on discretionary spending. Policy experts say prices and how the markets react are going to depend in part on how long this conflict goes.