Uncertainty is biggest driver of oil prices, says expert

Oil
Photo credit Giuseppe CACACE / AFP via Getty Images

Oil prices shot up when trading opened internationally, for the first time after the U.S. and Israel began bombing Iran. That could lead to gas price hikes.

The conflict could drive up worldwide oil demand from other sources and impact oil availability.

"The U.S. does not get any oil from Iran," said AAA petroleum market analyst Don Redman. But as he points out, it's not that simple.

"But that doesn't mean other countries, most notably China, get their oil from Iran," said Redman.

It sends China to other oil producers, and Redman says another go-to source for them is out of commission.

"You know, they had a sweet deal with Venezuela," he said. "That's come to an end."

And with Iran targeting oil shipping in the straits of Hormuz, Redman said, "there's always the fear, of course, that the war expands."

AAA says the price of gasoline increased a penny from yesterday to today, and is up eight cents over the past week.

The average price for a gallon of regular in the New Orleans area is now $2.58.

Featured Image Photo Credit: Giuseppe CACACE / AFP via Getty Images