Rising tensions in Iran mean rising gas prices at home

PHILADELPHIA (WPVI) -- Renewed tensions between the United States and Iran has local gas prices climbing.

Drivers searching for lower fuel costs are heading to a Wynnefield Heights gas station offering regular gasoline at $3.89 per gallon, about ten cents below the citywide average of $3.99.

Jana Tidwell of AAA said current gas prices remain significantly higher than a year ago.

"That puts us at about 80 cents more per gallon at this time last year," she said.

Oil prices had dipped into the $60 range when discussions of a peace deal, a cease-fire and reopening of the Strait of Hormuz appeared possible.

On Tuesday, oil was hovering near $80 a barrel as tensions escalated. The U.S. military is establishing another blockade in the shipping channel, which handles roughly 20% of the world's crude oil exports.

Tidwell said the renewed instability is driving prices upward.

"Right now, it seems that we are back, sadly, in conflict mode and with the Strait of Hormuz being the critical juncture here. If that is shut down, we are just going to see the price of oil increase," she said.

President Donald Trump on Monday announced the U.S. will impose a 20% fee on all cargo traveling through the Strait of Hormuz.

On Tuesday, he moved away from a fee. Instead, he is proposing deals with Gulf States aimed at bringing business to the United States.

Drivers say the global conflict is affecting their daily expenses.

"Politics matter to everyone. Everything you're buying, and what you're seeing on TV, and experiencing. It's disconcerting and it's really nerve-racking," said Peter Slutsky of Merion Station.

"I wish it was cheaper, but this is what we've got to deal with now," said Steve George of Wynnefield.

Experts say fuel costs typically rise two to three cents per gallon for every $1 increase in the price of a barrel of oil.