Shock gas price hike revealed as oil markets are rocked by Trump's Iran strikes - and it's set to get even worse
Gas prices at the pump are expected to rise a further five cents per gallon as the aftershock of US missile strikes in Iran continue to rock the stock market.
National average gas prices rose five cents to $3.22 per gallon when Israel struck Iran's nuclear facilities last week, and experts have warned they're due to rise by a similar amount again as a result of Donald Trump 's intervention on Saturday night.
Andy Lipow of Lipow Oil Associates told the Daily Mail that further retaliatory strikes from Iran could cause petrol prices in the US to rise to around $3.27 per gallon in the coming days.
'It usually takes about a week or two for the change in oil prices in the futures market to filter into the gasoline price at the pump,' Lipow said on Sunday night.
'Early when the market opened we were seeing futures up about 10 cents a gallon, but it's now only five cents a gallon, while diesel futures are up about 10 cents a gallon.
'Over the next week we expect gasoline prices overall will continue to rise another five to six cents a gallon.
Lipow added that 'any retaliatory attacks could impact gas prices further'.
GasBuddy expert Patrick De Haan also said on X that he expects gas prices to rise to a maximum of $3.50 per gallon, up from the current national average of $3.22.
GasBuddy expert Patrick De Haan said average diesel prices have 'seen their biggest seven-day rise since August, 2023', increasing by 17 cents per gallon
He said the average diesel prices have 'seen their biggest seven-day rise since August, 2023', increasing by 17 cents per gallon.
The situation could also dramatically worsen if Iran closes the Strait of Hormuz, the sea passage out of the Persian Gulf which acts as a conduit for at least 20 percent of the world's oil supply.
Iran's Parliament voted on Sunday in favor of closing the narrow passage - but the move is yet to be approved by the country's Supreme National Security Council.
The final decision hangs in the balance, since closing the strait would also have devastating impacts for Iran's own economy.
Donald Trump entered the conflict between Israel and Iran on Saturday night by using American warplanes to target Iranian facilities in Fordo, Natanz and Isfahan.
Known as Operation Midnight Hammer, the strike involved more than 125 US military aircraft, along with submarines.
Iran has warned that there will be repercussions, and Trump hit back by saying that any retaliation would be met with 'even greater force than what was unleashed today'.
The Middle Eastern country launched more missiles on Tel Aviv in Israel on Sunday morning, and Iran's Houthi allies in Yemen also said they would join the retaliation.
GasBuddy expert Patrick De Haan also said on X that he expects gas prices to rise to a maximum of $3.50 per gallon, up from the current national average of $3.22
There have already been hundreds of casualties.
Iran's health ministry said Israeli strikes killed at least 400 people and injured 3,000, while at least 24 people in Israel have died in missile strikes from Iran.
The conflict escalated 10 days ago when Israeli Prime Minister Benjamin Netanyahu launched attacks on Iran's nuclear and military strikes.
Israel first warned people in Tehran's District 18, which comprises military buildings and residential neighborhoods, to evacuate. Hours later, the first volley of strikes were reported in the area.
Netanyahu said the attacks, called Operation Rising Lion, targeted Iran's nuclear program.
'If not stopped, Iran could produce a nuclear weapon in a very short time,' Netanyahu said.
Iran's Supreme Leader Ayatollah Ali Khamenei said Israel 'should anticipate a severe punishment', while its foreign minister called the strikes a 'declaration of war'.
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Reuters
32 minutes ago
- Reuters
US attack on Iran adds to economic uncertainty
June 23(Reuters) - The U.S. bombing of Iran's nuclear sites injected fresh uncertainty into the outlook for inflation and economic activity at the start of a week chock full of new economic data and central banker commentary, including two days of Congressional testimony from Federal Reserve Chair Jerome Powell. The downside of the attacks may be the easiest to see: the potential for a spike in energy prices, a continuation of the hesitancy that has gripped households and businesses and could crimp spending, and the possibility of a response from Iran that materializes well outside the Gulf. With the U.S. economy already expected to slow under pressure from the Trump administration's high import tariffs, a rise in oil prices resulting from the conflict "could provide powerful downward pressure on households' ability to spend... and that could slow GDP even more," Morgan Stanley Chief Economic Strategist Ellen Zentner said on Sunday. There's also the more bullish case, should the attacks pave the way for eventual stability in the region. "Predicting geopolitical developments in the Middle East is a treacherous exercise," analysts at Yardeni Research wrote after the attacks. "However, the Israeli stock market suggests that we may be witnessing a radical transformation of the Middle East now that Iran has been de-nuked." Israel's Tel Aviv main index .TA125, opens new tabwas at an all-time high after the attacks. That said, the U.S. labor market is clearly losing momentum, even as inflation pressures look set to increase. Data due on Thursday for continued jobless claims will factor into the Labor Department's monthly jobs report for June. To date those reports have pointed to a softening but still-solid job market, with the unemployment rate at a relatively low 4.2%, but Fed policymakers keenly watching for signs of deterioration. Data to be published on Friday is expected to show the weakest U.S. consumer spending growth since January. And while it is also expected to show inflation running near the Fed's 2% goal last month, many Fed officials expect tariffs to feed into higher prices in coming months. A sharp rise in energy prices could fan the embers of inflation further. Powell will undoubtedly be pressed on that possibility and for other ramifications of Middle East developments during two days of Congressional testimony, beginning Tuesday at the House Financial Services Committee and continuing on Wednesday at the Senate Banking Committee. Fed officials last week left the policy rate in its current 4.25%-4.50% range, and while policymakers signaled they felt economic conditions would likely warrant a couple of interest-rate cuts later this year, Powell said that forecast comes with little conviction, given all the uncertainty about tariff policy and how the economy will respond. The weekend's U.S.-Iran developments raise new questions about how uncertainty will impact Fed decision-making, wrote Wells Fargo senior economist Sam Bullard. "The markets will be watching for clues as to how the Fed recalibrates the inflationary risks from higher energy prices and tariffs against the disinflationary pressures of slowing growth," he said.
The Guardian
37 minutes ago
- The Guardian
Trump talks of regime change in Iran and insists US ‘obliterated' nuclear sites
Donald Trump raised the prospect of regime change in Iran and defended his claim that its nuclear enrichment sites had been 'totally obliterated' by US strikes over the weekend, insisting it was an 'accurate term' even as a US damage assessment was still underway. The US president said in a social media post that the sites – which were struck by GBU-57 'bunker buster' bombs and Tomahawk cruise missiles on Saturday night – sustained 'monumental damage', adding: 'The biggest damage took place far below ground level. Bullseye!!!' Trump also highlighted the possibility of regime change in Tehran if the country's leaders were unable to 'make Iran great again', going further than remarks by his senior officials. Defence secretary Pete Hegseth said the mission 'was not and has not been about regime change' but instead 'a precision operation' targeting Iran's nuclear programme. Vice-president JD Vance said the US was 'not at war with Iran, we're at war with Iran's nuclear programme' while US secretary of state Marco Rubio said the US was 'not looking for war in Iran'. Iran's President Masoud Pezeshkian said the US strikes revealed Washington was 'behind' Israel's campaign against the Islamic republic and vowed a response. US defence officials were re still working to determine just how much damage Operation Midnight Hammer did. General Dan Caine, the chair of the joint chiefs of staff, said earlier it was not clear whether Iran retained some nuclear capability and he stopped short of using the same language as Trump. UN nuclear chief Rafael Grossi said: 'At this time, no one, including the [International Atomic Energy Agency], is in a position to assess the underground damage at Fordow.' Meanwhile, unprecedented attacks continued to send shockwaves through the Middle East and further afield. Airlines sought to help thousands of travellers stranded in the region while countries arranged repatriation flights for citizens. The US Department of Homeland Security issued a terrorism bulletin on Sunday warning of cyber attacks and violence in the US, including antisemitic hate crimes. It said there were 'no specific credible threats against the homeland' but noted that a 'heightened threat environment across the United States' was expected to last throughout the summer. Oil prices briefly surged early on Monday amid concerns that Iran might seek to inflict economic pain on the US by closing the Strait of Hormuz, a strategically important waterway through which over a fifth of the world's oil supply passes. Iran's parliament has reportedly approved the closing of the route, although any decision would be made by Iran's supreme national security council, Reuters reported. Rubio sought head off that scenario, telling Fox News on Sunday: 'I encourage the Chinese government in Beijing to call them [Iran] about that because they heavily depend on the Strait of Hormuz for their oil.' Tehran's next move may be influenced by advice from Russia. Iranian foreign minister Abbas Araqchi landed in Moscow early on Monday to discuss 'common threats' with President Vladimir Putin. Earlier, Araqchi warned would be no return to diplomacy until it had retaliated. 'The US showed they have no respect for international law. They only understand the language of threat and force,' he said. Amid continuing turmoil, France said on Sunday it would send military aircraft to Israel to fly any of its citizens who wish to leave out to Cyprus. France has 250,000 of its citizens in Israel. A crisis team at the French foreign ministry has received more than 4,500 phone calls in the past week. On Monday, the first group of Filipinos will be repatriated, mainly from Israel. At least 30,742 Filipinos are living and working in Israel, many of them in the care sector, while 1,180 are living in Iran. A total of 223 Filipino nationals in Israel and eight in Iran have requested repatriation after the weekend strikes, according to local media. The number of Australian citizens seeking government help to evacuate the Middle East reached 3,800 as of Sunday morning, including 2,600 people in Iran and 1,200 in Israel. Australia said it has sent two defence planes to the region to assist with any civilian evacuations. Air France KLM said on Sunday that it cancelled flights to and from Dubai and Riyadh on Sunday and Monday. British Airways also cancelled flights to and from Dubai and Doha for Sunday. It was still reviewing the situation, it said in a statement on Sunday evening, when asked about later flights. The Middle East route has become more important for flights between Europe and Asia in the wake of the Ukraine war.
Daily Mail
37 minutes ago
- Daily Mail
Los Angeles cops scramble to delete 'embarrassing and offensive' post about Iran strikes: 'How is this real?'
Los Angeles cops have scrambled to delete a bizarre social media post about the conflict in Iran after it was widely slammed as 'embarrassing' and 'offensive'. The LA County Sheriff's Department expressed condolences for the 'tragic' US bombing of Iranian nuclear sites on Sunday in a since-censored post. 'Our hearts go out to the victims and families impacted by the recent bombings in Iran,' the post on X stated. 'While this tragic event happened overseas, the Los Angeles County Sheriff's Department is closely monitoring the situation alongside our local, state and federal partners.' Social media users were quick to slam the post as out-of-touch with public sentiment, and disrespectful to the Jewish community. Many people also questioned why a local sheriff's department was getting involved in international politics, particularly after facing heavy criticism for allowing anti-ICE and 'No Kings' riots to spiral out of control in LA just weeks ago. 'We sincerely hope your account was hacked,' a non-profit group called Stop Antisemitism wrote in response to the controversial post. 'There were no victims in last night's successful targeting of Iran's nuclear sites.' A non-profit group called Stop Antisemitism were among those who called out the post One X user slammed the post as 'PATHETIC and DISGUSTING'. 'Your "hearts are with the people of Iran". Did you put that statement out EVERY time the people of Israel got bombed?' they fumed. 'No wonder your city and state is a CESSPOOL.' 'As a 31 year veteran of a Big City Police Department, I have to say that your initial post, calling the bombing of Iranian nuclear sites a 'tragic event', was beyond embarrassing,' another person wrote. 'Since when do LE agencies comment on national defense, or foreign policy issues? Try policing LA.' The sheriff's office promptly deleted the post and issued a lengthy apology. 'We are issuing this statement to formally apologize for an offensive and inappropriate social media post recently posted on our Department social media platforms regarding the ongoing conflict in Iran. 'This post was unacceptable, made in error, and does not reflect the views of Sheriff Robert G. Luna or the Department. 'As a law enforcement agency, we do not comment on foreign policy or military matters. Our mission remains solely focused on protecting public safety and serving our diverse communities.' The sheriff's office promptly deleted the post and issued a lengthy apology (shown above) The department said it has 'launched an internal review to determine how it was created and published'. 'Steps are being taken to strengthen our social media oversight protocols and ensure that any future communications align with our Department's standards of professionalism, respect, and accountability,' they added. But X users weren't satisfied, and many doubled down on their criticism of the department. 'I do not accept your apology,' one person wrote. 'The offensive post regarding the situation in Iran was deeply disrespectful, especially given the significant Jewish community of over half a million in Los Angeles. 'An internal review and updated protocols are insufficient to address the harm caused. 'True accountability and respect must be demonstrated through meaningful action, not just words. 'I urge you to engage with the community to rebuild the trust you've broken.' 'Someone needs to be removed from your social media team and reprimanded. It was totally unacceptable post! In the private world, they'd be fired,' another person said. 'DID YOU APOLOGIZE TO THE JEWISH COMMUNITY?' a third X user commented. 'I didn't see that here.' X users said the sheriff's office should focus on the chaos in their own backyard instead of getting involved in international issues. LA law enforcement officials are under the microscope for their handling of anti-ICE riots in the city which spiraled out of control on June 6. Demonstrations were initially peaceful, but they escalated into lawlessness and violence when some protestors lit vehicles on fire and looted stores. Police and local politicians were heavily criticized for failing to preserve the peace. On June 14, the protests spread nationwide with 2,000 rallies organized across all 50 states by 'No Kings', a group which says it opposes 'authoritarianism, billionaire-first politics, and the militarization of our democracy'. Trump entered the conflict between Israel and Iran on Saturday night by using American warplanes to target Iranian facilities in Fordo, Natanz and Isfahan. Known as Operation Midnight Hammer, the strike involved more than 125 US military aircraft, along with submarines. Iran has warned that there will be repercussions, and Trump hit back by saying that any retaliation would be met with 'even greater force than what was unleashed today'. The Middle Eastern country launched more missiles on Tel Aviv in Israel on Sunday morning, and Iran's Houthi allies in Yemen also said they would join the retaliation. There have already been hundreds of casualties. Iran's health ministry said Israeli strikes killed at least 400 people and injured 3,000, while at least 24 people in Israel have died in missile strikes from Iran. The conflict escalated 10 days ago when Israeli Prime Minister Benjamin Netanyahu launched attacks on Iran's nuclear and military strikes. Israel first warned people in Tehran's District 18, which comprises military buildings and residential neighborhoods, to evacuate. Hours later, the first volley of strikes were reported in the area. Netanyahu said the attacks, called Operation Rising Lion, targeted Iran's nuclear program. 'If not stopped, Iran could produce a nuclear weapon in a very short time,' Netanyahu said. Iran's Supreme Leader Ayatollah Ali Khamenei said Israel 'should anticipate a severe punishment', while its foreign minister called the strikes a 'declaration of war'.
