Metro Detroit gas prices surge after Iran strikes
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Gasoline prices are jumping in Detroit and elsewhere as oil prices spike following the U.S. and Israel strikes on Iran, reflecting market fears of extended geopolitical upheaval.
Why it matters: Americans use about 370 million gallons of gas per day, so price increases have an immediate effect on their pocketbooks and mood about the economy.
The big picture: The national average price of unleaded gas hit $3.11 per gallon on Tuesday, up 11 cents overnight, according to AAA.
- It was the biggest single-day spike since March 4, 2022, according to GasBuddy analyst Patrick De Haan.
- And it marks its highest point since Oct. 9, according to data supplied to Axios by the Oil Price Information Service.
Zoom in: Metro Detroit's gas prices have followed the national trend, exceeding $3 per gallon on average in recent days.
Between the lines: Tom Kloza, a longtime oil analyst now working for Gulf Oil, tells Axios that he expects the national average price to reach a high of $3.25 to $3.50 in the coming weeks.
Follow the money: Gas stations can change prices multiple times a week. Operating on thin margins, they typically price based on what their next fuel shipment will cost — not what they paid for what's already in their tanks.
The bottom line: The ripple effects of the Iran war are still unfolding.