Price at the Pump: Oil Prices Up As US/Iran Resolution Unlikely

After dropping last week on hopes of some kind of peace deal between the United States and Iran, oil prices are once again moving higher. As of Tuesday morning's trade, both West Texas and Brent Crude were trading above $100 per barrel, at $101 and $107 a barrel respectively.

Patrick Dehaan with Gasbuddy.com said with oil prices moving higher, it’s only a matter of time before fuel prices move up as well. He added the national average for a gallon of gas is $4.48, while diesel sits at $5.62 a gallon, just 20 cents from a new all-time national record.

“The situation now with oil prices obviously remains very volatile depending on developments between the U.S. and Iran," DeHaan said. "And for now, those developments are not so positive, but rather negative, as President Trump's President Trump dismisses Iran's proposal as unacceptable.”

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DeHaan added the unpredictability of oil prices is impacting all economies across the globe, not just the United States. And some in Europe are growing impatient.

“There's more pressure for the Strait of Hormuz to be reopened. In fact, so much so that the United Kingdom and France, both now sending new military assets into the strait or closer to the strait to potentially now act to intercede in restoring the Strait of Hormuz. We'll have to see how that goes. But those aircraft carriers and military vessels certainly could be active in playing a role in the weeks ahead, should the strand of hormones continue to be closed.”

Another international issue that’s moved to the front burner is Russia and Ukraine, with talk that conflict could be nearing its end. What kind of impact would that have on oil prices, and the energy picture in general?