Drivers face an unpleasant surprise at the gas pump
It was only a few weeks ago that oil were dropping so fast that Americans could start to see big drop in gasoline prices.
The newest round of shooting between the United States and Iran means that gas prices are heading higher for now. Maybe back to an average $4 per gallon in the United States, one analyst said.
The price increase should occur over the next week to 10 days, said Denton Cinquegrana, chief oil analyst at the Oil Price Information Service, which collects data for AAA's daily price report. The July 13 price, released early in the morning after collection over the weekend, was $3.872 a gallon.
GasBuddy.com late on July 13 showed its average price at $3.824 a gallon, up from $3.822 on Sunday and $3.719 on July 5.
Higher prices was not something Cinquegrana expected when June turned into July, but the drone attacks on shipping in the Strait of Hormuz by Iran and U.S. retaliation is forcing the issue, he said.
Crude oil prices jumped more than 9% on July 13 in both London and New York after President Trump announced the United States will reimpose a blockade on ships entering or leaving the Persian Gulf. The blockade will take effect at 4 p.m. ET on July 14.
Light sweet crude jumped 9.4% to $78.14, the biggest percentage gain since April 2. Brent crude, the global benchmark, settled at $83.30. The 9.6% increase was its largest since May 5, according to Wall Street Journal data.
A wildcard that could mean even higher prices
Things may get more expensive after Trump said the U.S. would charge shippers a 20% fee on the value of a ship's cargo to cover U.S. Navy's costs to protect them and their cargoes from attacks.
On the largest oil tankers that carry up to 2 million barrels of oil and oil at $75, that could mean a fee of $30 million fee.
Global oil prices could jump $7 or $8 a barrel more almost immediately and disrupt trade and economies around the world.
Moreover, the idea contradicts Secretary of State Marco Rubio, the New York Times noted. In June, Rubio said "No country is allowed to charge tolls or fees on an international waterway. That's existing international law."
The president "was just talking off the top of his head," one analyst said.
So, the situation is fluid.
It's more than fluid if you see fluid meaning unknown or uncertain.
A war that just won't stop
It also means that Iran and the U.S. "are ramping up a lot more," said John Kilduff, a New York oil trader.
Julian Edelman of Evercore ISI told CNBC a 9% jump in oil prices "was on anyone's dance card."
No wonder, then, that the stock market sagged, especially technology stocks.
The Dow Jones Industrial Average was down 0.3%, or 138 points, to 52,499. The Nasdaq-100 Index dropped 1.9%, or 561 points, to 29,264. Nvidia fell 3.5%. Oracle dropped 6.5%. Apple, was an exception, hitting a new 52-week high before ending at $317.31, a 06% gain.
The second-quarter earnings season starts in earnest on July 14 with JPMorgan Chase leading the parade.
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This story was originally published July 14, 2026 at 12:47 PM.