LANSING, Mich. — Michigan drivers are already paying more at the gas pump, and experts warn prices could climb even higher as violence escalates in the Middle East.
- Michigan drivers are paying just below $3 a gallon as of Monday, up 15 cents from the previous week, according to AAA.
- Experts are watching the Strait of Hormuz, where about one-fifth of the world's liquefied natural gas and crude oil flows daily, as the Middle East conflict threatens to disrupt global supply chains.
- Analysts warn that if crude oil prices reach $100 a barrel, Michigan drivers could see pump prices hit $4 a gallon.
WATCH: MICHIGAN GAS PRICES RISE AMID MIDDLE EAST CONFLICT
As of Monday, drivers across Michigan are paying just below $3 a gallon, which is up 15 cents from the previous week according to AAA.
Part of the increase is seasonal according to AAA spokesperson Adrienne Woodland, who says refineries make an annual switch that drives up costs.
"Refineries are switching over from the winter blend of gasoline to the summer blend of gasoline which is more expensive to produce," said Woodland.
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But the Middle East conflict is adding another layer of uncertainty. Economic experts are closely watching the Strait of Hormuz, a small strip of water next to Iran, as a key pressure point for global energy supplies.
"About one-fifth of liquefied natural gas and crude oil flows on a given day. We're looking to see if that becomes effectively shut," said Jason Miller, professor of supply chain management at Michigan State University.
Parts of the supply chain through the Strait are on pause as the war continues and Miller says the economic impact depends on how long the conflict lasts.
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"You can almost think of it like it's a bad accident on the freeway and traffic is shut. If it's shut for 30 minutes it's not that bad. If it's shut for an hour, it's a lot worse. If it's shut for two hours, it starts getting exponentially worse," said Miller.
Miller is watching to see if crude oil prices rise to $100 a barrel, a threshold he says could push pump prices significantly higher.
"You get to $100 a barrel that's when we hit the psychological $4 a gallon pricing situation," said Miller.
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Woodland said the situation remains uncertain but offered drivers some practical advice in the meantime.
"It's definitely a fluid situation," Woodland said. "Definitely consider paying cash. Some retailers charge extra if you're using a credit card while you're purchasing your gasoline."
President Trump said he expects the conflict to last four or five weeks. By that time, analysts say drivers and the broader economy could feel the effects well beyond the gas pump.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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