The escalating tensions between the U.S. and Iran could mean higher gas prices for American drivers.
Former Shell Oil president John Hofmeister told FOX Business during an interview on Friday that he anticipates a summer spike in gas prices from a domestic market standpoint.
“I don’t think [prices] will skyrocket, but I do think they’ll creep up on a steady basis until we reach the summer peak,” he said on Friday. “I am not sure what that will come out -- what is it $3? Is it just under? -- is it just over $3 a gallon but I think we will be close to that pretty soon.”
Oil prices jumped this week after Saudi Arabia said armed drones struck two oil pumping stations this week. The saber-rattling in the Middle East caused oil prices to climb more than 1 percent. Brent crude hovered around $72.66 per barrel during trading on Friday.
Hofmeister said the uncertainty in the Middle East adds to the conflicting trend that pushes oil prices higher. He added that the increasing volume of U.S. drivers puts extra pressure on gasoline prices.
“There’s a bit of imbalance, and that imbalance puts pressure on the supply of gasoline and especially the supply of diesel,” Hofmeister.