Gas Prices Could Jump to Record Levels as Oil Surges and Iran Tensions Escalate

Oil has surged to about $90.90 per barrel from $66 earlier this month, pushing U.S. gas prices up 16% in the past week as supply-risk fears around Iran and the Strait of Hormuz threaten global oil flows. The national average is around $3.45/gal, with California potentially climbing above $7.50/gal if market forecasts hold. Some prediction markets see a 63% chance gas could exceed $4.50 by the end of March (and a real risk of hitting new all-time highs), highlighting a potential domestic energy shock even as U.S. production has grown since 2008. Continuous oil-market dynamics and geopolitics remain the key drivers behind the price squeeze onto consumers.