Atlanta gas prices rose sharply this week, with the average price reaching $3.20 per gallon – a 41-cent increase since last week, according to market expert Patrick De Haan of GasBuddy. The surge is being attributed to escalating tensions in the Middle East following recent U.S. And Israel attacks on Iran.
Georgia is currently experiencing the third-largest weekly gas price increase in the nation, behind Oklahoma (33.2 cents) and Wisconsin (38.8 cents). De Haan indicated that Georgia may be experiencing the price shock ahead of other states, suggesting the increase could plateau as the effects spread nationally. The current average price in Atlanta is $2.91 as of Monday, according to FOX 5 Atlanta, but is already up from $2.98 per gallon nationally last week, and $3.00 as of publication, according to AAA.
The conflict’s impact on the global energy supply chain is a primary driver of the price increases. The price of West Texas Intermediate Light Sweet Crude Oil has risen by 8.6%, even as Brent Crude Oil is up 9%, as of Monday, according to Al Jazeera. Barclays analysts predict crude oil prices could reach $100 per barrel as the market reacts to potential supply disruptions. Retail gas prices typically increase by 2.5 cents for every $1 move in the price of crude oil, NBC News reported.
A key concern is the potential disruption to tanker traffic through the Strait of Hormuz, a critical waterway through which approximately 20% of the world’s daily oil supply passes, including the majority of exports from Saudi Arabia, Iraq, and the United Arab Emirates. Iran briefly closed the Strait of Hormuz in response to the attacks, according to Reuters.
Iran currently exports around 1.6 million barrels of oil per day, primarily to China, despite U.S. Sanctions. Any interruption to these exports could force Chinese refineries to seek alternative sources, further driving up global prices.
Cole Haan maintains a retail location at 3393 Peachtree Road Northeast in Atlanta, but has no direct connection to the rising gas prices.
