GRAND RAPIDS, Mich. — Three weeks into the war in Iran, crude oil prices have climbed above $100 a barrel — the highest levels since the pandemic's peak — and the nationwide average for a gallon of unleaded gas is quickly approaching $4/a gallon.
GasBuddy analyst Patrick De Haan says it doesn't look like prices are not coming down anytime soon. President Donald Trump has said that the initial sting at the pump will be temporary.
"Iran is the only country right now that is seeing vessels with their oil sail through the Strait of Hormuz. So Iran is learning, hey, if we threaten attacks on other ships, we can just start shipping more of our own oil at a much higher price," De Haan said.
When I sat down with De Haan, he explained that Iran knows its existence is being threatened. The country has been attacked, seen a regime change, and is now looking to exert maximum pressure back on the U.S. in retaliation — primarily through threats on the Strait of Hormuz — knowing the president is being pressured to keep gas prices manageable for the average American.
Three weeks in, an even bigger concern is the dollar or more jump in diesel prices across a majority of states.
"It's going to reignite inflation talks, because the price of diesel now is above $5 a gallon, and in almost half of the US states, the national average for the price of diesel is going to hit the $5 a gallon mark imminently," De Haan said.
"So farmers paying that in their fields, truckers paying that to bring the food to your grocery store, that is kind of the hidden tax that Americans are really going to start feeling again," De Haan said.
De Haan is now predicting higher prices to last through the summer, with West Michigan gas prices cycling between the low $3-a-gallon mark and the mid $3-a-gallon mark in the months ahead.
The war in Iran is not the only factor driving steeper prices. The seasonal shift to a more expensive blend of gasoline is also contributing to the climb.
According to GasBuddy.com, here is where gas prices stand across West Michigan today:
- Kent County: $3.57 per gallon
- Muskegon County: $3.50 per gallon
- Ottawa County: $3.52 per gallon
- Kalamazoo County: $3.55 per gallon
These prices reflect the most up-to-date averages for each county, so prices at individual stations may vary.
With the current trend, analysts suggest it is better to fill up sooner rather than later, as prices do not appear poised to drop.
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