Oil prices spike amid Iran war; Oregon gas remains above national average

PORTLAND, Ore. (KATU) — Oil prices continue to soar Monday as the war in Iran shows no signs of slowing down. Oregon’s gas prices are above the national average.

Production and shipping in the Middle East have been jeopardized by the conflict, pummeling financial markets.

The Associated Press reported that the price for a barrel of Brent crude surged to $119 on Monday. That’s the highest level it’s been since the summer after Russia invaded Ukraine in 2022. Brent crude is the international standard.

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The prices fell to just under $100 later Monday, but barrels are still 36% more expensive than they were before Israel and the United States attacked Iran on Feb. 28.

Today’s AAA national average is $3.478, whereas Oregon’s current average across the state is $4.205.

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The average in Oregon just a year ago was 3.730, demonstrating a 12% increase since then.

Still, Washington State’s current average remains higher than Oregon’s, at $4.630.

Malheur County in Oregon currently has the cheapest gas price at $3.499, while Josephine has the more expensive at $4.447.

AAA suggests maintaining cars to the manufacturer’s recommendations can help save fuel. The agency also recommends slowing down and driving the speed limit, avoiding “jackrabbit” starts and hard accelerations and avoiding extended idling to warm up the engine, in winter and even prolonged idling in general.

Research by AAA has shown that premium fuel provides no added benefit unless it is recommended or required by the car’s manufacturer.

Vice President and Global Head of crude oil research at at S&P Global Energy Jim Burkhard said in an analysis on Monday that, at first, the crisis was a transportation issue, “which could conceivably be resolved quickly.”

However, he explained that production and storage concerns are increasingly piling up and restoration “will be a massive technical exercise that could last weeks or more.”

Energy experts’ opinions are clashing, as some warn the war could contribute to even higher oil prices in the near future. In particular, if the Strait of Hormuz remains closed for only a few weeks, oil and gas strategists at Macquarie Research said the price of crude could push to a $150 per barrel or higher. Such prices would top previous peaks of nearly $147, which were reached just before the 2008 financial crisis.

Others, however, don’t expect the disruptions to last much longer. Oxford Economics researchers predict prices will soon fall to an average of $80 a barrel for the quarter, but noted today that the “risk of a more prolonged crisis has clearly increased.”

Iran exports roughly 1.6 million barrels of oil a day, mostly to China, which has called for an immediate end to the fighting.

The Associated Press contributed to this report.