NASHVILLE, Tenn. (WTVF) — Gas prices are on the decline here in Tennessee according to AAA, but experts say that relief at the pump will likely be short lived due to the conflict between Israel and Hamas.
Israel plays a small role in oil production, but the concern is that fighting will spread across the Middle East, involving major producers like Iran.
Currently in Tennessee, regular gas is averaging at the lowest it has been in a while at about $3.26.
On Monday, however, U.S. and global oil futures traded about four percent higher at around $86 a barrel following the Hamas attacks in Israel.
Crude oil traded slightly lower Tuesday, but as fighting continues the concern is that it could cross the $100 per barrel threshold according to S&P Global.
Iran is an example of a country that is being watched closely because officials said it is a primary supporter and funder of Hamas, although the country has denied involvement so far.
If the U.S. decides to place sanctions against Iran, that could affect the country's oil output and global energy markets and that is when we will see higher prices at the pump.
For now though, experts said an immediate rise in gas prices is more of a knee-jerk reaction to what is happening in Israel, and any impact may be muted because gas prices typically drop during the fall season.
However, it is something to keep an eye on and possibly prepare for in the future as conflict continues.
