Gas Prices Just Jumped $0.48 in One Week, and History Says They're Going Higher

Core Insights - The ongoing conflict in Iran has led to a significant increase in gasoline prices in the U.S., with prices rising from an average of $3.46 per gallon on March 7 to $3.88 per gallon recently, marking a total increase of $0.90 within a few weeks [1][2]. Historical Context - Historical oil shocks, particularly those originating from the Persian Gulf, provide insight into the current situation. Notable events include the 1973 OPEC oil embargo, the 1979 Iranian Revolution, and the 1990 Gulf War, all of which resulted in substantial increases in gasoline prices [2][3][4]. 1973 OPEC Oil Embargo - During the 1973 OPEC oil embargo, gas prices rose only 10% initially to $0.39 per gallon, but surged to $0.53 per gallon by 1975, representing a 47% increase from 1973 levels [5]. 1979 Iranian Revolution - In 1979, gas prices averaged $0.63, increasing by 36% to $0.86 per gallon in 1980, and then by another 38% in 1981, totaling a 89% increase from the initial price [6]. 1990 Gulf War - Prior to the 1990 Gulf War, gas prices averaged $1 per gallon. The swift response to the invasion of Kuwait limited the price increase to $1.14 per gallon by 1991 [9].