Gas prices surge as Iran tensions disrupt oil markets

WILMINGTON, N.C. (WECT) - Henry Pearce works three jobs to make ends meet, and a recent trip to the gas station left him stunned.

“I got some tip money, 21 bucks,” Pearce said. “Typically, that gets you, I mean, it used to get me about half a tank, and then I just filled it up quarter tank, got me exactly 5.2 gallons of gas.”

Data from GasBuddy shows the national average is over $4 per gallon, more than a dollar higher than this time last month. In North Carolina, the average is $3.90.

“It makes me mad, honestly, whenever I have to think about something like this, when I’ve got to think about buying groceries, buying clothes, and generally being alive,” Pearce said.

Economists say there is a reason prices are climbing.

“The recent escalation in Iran, a country that is a big exporter in oil, has resulted in significant uncertainty in the oil market, and that uncertainty typically translates into higher prices at the pump,” said Mouhcine Guettabi, an economist at UNCW.

Guettabi said oil is a world market. When supply from a major exporter gets disrupted, prices rise.

A similar situation happened when Russia invaded Ukraine. Prices spiked before coming back down, Guettabi said.

The impact goes beyond the pump.

“Prices of other things that may not be directly impacted by oil are seeing changes in prices because the cost of production has been impacted, or the cost of transporting stuff has been affected,” Guettabi said.

Groceries, goods and anything that has to be shipped or driven to a store shelf are affected.

In a region growing as quickly as southeastern North Carolina, those costs add up quickly.

Guettabi said there is a silver lining.

“The good thing is that typically these kinds of oil shocks tend to be temporary,” Guettabi said.

For Pearce, temporary is not soon enough. Driving is not optional.

“I work downtown, I work across the street, I live across town, so I have to drive literally everywhere,” he said.

For someone already stretched thin, every extra dollar at the pump is one that cannot be spent somewhere else.