Gas prices rising in Houston amid Middle East conflict

HOUSTON - As the conflict in the Middle East continues to disrupt global oil supplies, gas prices in Houston have surged, with some stations in high-traffic areas hitting marks well above the city average.

Middle East conflict raising gas prices

Iran war impacting gas prices

The "What's Your Point?" panel discusses the latest in local, statewide, and national politics.

Local perspective:

Drivers in the Houston area are waking up to a harsh new reality at the gas pump. 

While the citywide average for a gallon of regular gas is around $3.50 according to Gasbuddy, many Houstonians are seeing much higher figures. In the River Oaks and Upper Kirby areas, prices have been spotted as high as $4.59 for regular gas.

For those requiring premium fuel, the financial hit is even heavier. Local Houstonian Lee Henagan, who drives a 2023 Audi, recently found himself paying $5.60 per gallon for premium at a station off San Felipe.

"It's pretty shocking," Henagan said while filling up on his way to work. "You hear the news and expect things to go up, but I wasn't expecting this much. This is the highest I've seen."

Henagan’s total for the single fill-up: $91.86.

Why are gas prices rising?

Breaking down US-Iran impact on gas prices

Lipow Oil President Andy Lipow joined FOX 26's Caroline Collins to break down the cause and effect between the latest US-Iran strikes and local gas prices.

The backstory:

The primary driver behind the spike is the ongoing conflict in the Middle East, specifically concerns regarding the Strait of Hormuz. 

The Strait of Hormuz is widely considered the world's most important oil checkpoint because it is the only sea passage from the Persian Gulf to the open ocean, with approximately 20 million barrels of oil—nearly 20% of global consumption—moving through its 21-mile-wide lanes every day.

This physical shortage, combined with a "fear premium" as traders panic-buy in anticipation of even higher costs and rising shipping insurance, has historically sent crude prices toward or above $120 per barrel, leading to the immediate and sharp spikes drivers see at local gas stations.

According to GasBuddy, Houston prices jumped nearly 29 cents in just one week.

What you can do:

Matt McClain, a petroleum analyst with GasBuddy, warns that the "pain at the pump" is likely to trickle down into other sectors, including groceries and airfare. He suggests families need to become more "price sensitive" to weather the storm:

• Combine Trips: Avoid multiple outings by grouping errands together.
• Watch Your Speed: Slowing down on interstates can improve fuel efficiency by 25% to 35%.
• Shop Around: Prices can vary by 50 cents or more between stations just a few blocks apart.

"The reality is, we've gone through wave after wave of situations since COVID," McClain said. "Now we're looking at fuel prices that will impact quite literally everything."