Rising oil prices reflect anxiety over U.S., Iran standoff

US-Iran conflict raising oil prices; higher costs expected

As talks continue to stall for the US and Iran to reach a deal over the Islamic Republic's nuclear program, FOX 26's Tom Zizka says experts are tracking an ongoing rise in oil prices.

HOUSTON - Rising oil prices are reflecting anxiety over the standoff between the U.S. and Iran. Analysts predict hostilities will send prices higher.

US-Iran tension impacting oil prices

Big picture view:

When the United States bombed Iran's nuclear facilities last summer, oil prices jumped about $10 a barrel, then backed off when there was little military response. 

If the current standoff leads to hostilities, analysts expect much higher prices. 

While Iran faces sanctions that prohibit legal oil exports, 20% of the daily global appetite for a hundred million barrels of oil flows through the 21-mile-wide Strait of Hormuz, bordered by Iran. The country could easily try to choke the waterway.
As the United States builds its naval and air presence in the region, Iran vows to respond to any force.

‘We’re gonna pay for it'

What they're saying:

As the United States builds its naval and air presence in the region, Iran vows to respond to any force. 

Analysts expect an immediate price hike that could near double the cost of oil if hostilities break out.

"You'll see $100 oil, if not more than that. I feel like i'm being conservative," says Dallas oil producer Jay Young, of King Operating Group, "I know a lot of other people are saying $150, $200 oil. The world's not going to quit using oil, just because of some factor outside. We're gonna' see a need for that oil and we're gonna' pay for it."