US-Iran conflict expected to drive gasoline, diesel prices higher

Analysts are forecasting significant increases in gasoline and diesel prices due to the ongoing U.S.-led conflict with Iran. This development raises concerns about geopolitical tensions potentially affecting global oil markets. The U.S. retail motor fuel prices, particularly regular gasoline and on-highway diesel, have already seen noticeable increases, with current rates significantly higher than last year’s levels. The prediction aligns with the observation of a tight fuel market, where any additional supply risks could further inflate prices at the pump. Key Takeaways Analysts’ predictions of rising gasoline and diesel prices appear consistent with increased geopolitical tensions affecting crude oil markets. Current pricing in prediction markets suggests a limited probability of crude oil reaching a new all-time high by September 30, but a higher likelihood by December 31. Observable market behavior suggests participants are factoring in potential catalysts that could drive oil prices higher by the end of the year. What to Watch Markets will closely monitor any developments in the U.S.-Iran conflict that could further disrupt oil supply and affect global fuel markets. The Energy...