Trending Now - Iran Conflict Expected to Drive up Oil and Gas Prices

WHO:

President Trump, Energy Secretary Chris Wright, Ryan Sweet (chief global economist at Oxford Economics), Samuel Tombs (chief U.S. economist at Pantheon Macroeconomics), Laleh Khalili (professor of Gulf studies at University of Exeter), Ramnivas Mundada (director of Economic Research and Companies at GlobalData)

Oxford Economics, Pantheon Macroeconomics, Stanford Institute for Economic Policy Research (SIEPR), Tax Foundation, Energy Information Administration (EIA)

WHAT:

Oil prices briefly topped $119 per barrel on March 17th, 2026, following attacks on energy infrastructure.

Average gasoline prices reached $3.88 per gallon on March 17th, 2026, an increase of almost $1 since the start of the war.

The average U.S. household is expected to spend an additional $740 on gas in 2026 due to rising oil prices.

The average tax refund for individuals is estimated to be $748 in 2026 due to the "one, big, beautiful bill act" signed into law by Trump.

A 32% increase in gas prices was reported since the week before the Iran war began on February 28th, 2026.

EIA predicts gas prices will average $3.34 per gallon for the rest of 2026 and $3.18 for 2027.

WHERE:

Strait of Hormuz, Middle East, United States, South Pars gas field in Iran, Qatar, Saudi Arabia, Kuwait, United Arab Emirates

WHEN:

March 19th, 2026 (date of CBS News update)

February 28th, 2026 (start of the U.S.-Israel war against Iran)

March 11th, 2026 (date of Oxford Economics research note)

March 17th, 2026 (date of oil price spike)

WHY:

Rising oil prices are attributed to escalating violence in the Middle East, including attacks on energy infrastructure by Iran and Israel.

The conflict has led to concerns about supply disruptions and inflationary pressures in the U.S. economy.

HOW:

Attacks on energy infrastructure in Iran and retaliatory strikes on Qatari facilities have contributed to rising oil prices.

The EIA's projections are based on the assumption that the Strait of Hormuz will reopen, affecting oil production in the Middle East.

(UPDATED March 19, 2026 21:10 UTC)

Today, President Trump and several economic experts discussed the recent spike in oil prices, which briefly topped $119 per barrel on March 17, following attacks on energy infrastructure in the Middle East. As a result, average gasoline prices have surged to $3.88 per gallon, marking an increase of nearly $1 since the start of the war on February 28, and U.S. households are projected to spend an additional $740 on gas this year. The Energy Information Administration predicts that gas prices will average $3.34 per gallon for the remainder of 2026, assuming the Strait of Hormuz reopens and stabilizes oil production in the region.