Michigan gas prices rocket up as war in Iran spikes fuel costs

THE INTERVIEW| Global oil markets rattled crude surpasses $100

Global markets are reacting tonight as tensions with Iran intensify and oil prices climb. Energy prices have surged amid escalating attacks between Israel and Iran and growing concerns that the conflict could disrupt global oil supplies. West Texas crude has climbed to around 90 dollars a barrel, and analysts warn prices could push past 100 dollars if fighting threatens shipping in the Strait of Hormuz. Hilary Golston speaks with Dr. Michael Greiner about prices and politics.

(FOX 2) - Michigan gas prices shot up more than half a dollar over the week, pushing the state's fuel costs to their highest in almost two years.

Gas prices rose $0.56 from a week ago, leading to an average of $3.55 per gallon for petrol.

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According to AAA, Michigan gas prices are rising fast as war in Iran and uncertainty around oil production forced its way into the markets.

Motorists are now paying an average of $53 for a 15-gallon tank of gas. It's 72 cents more than this time last week and 51 cents more than this time last year.

Fuel costs are now $3 higher than 2025's highest price, which arrived last August.

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Gas prices rose despite demand dropping last week while production rose.

"Gas prices across Michigan have skyrocketed, with drivers paying the highest prices since August of 2024," said Adrienne Woodland, spokesperson, AAA. "If crude oil prices continue to climb, pump prices may increase further."

Most expensive gas price averages: Saginaw ($3.65), Lansing ($3.64), Traverse City ($3.63)
Least expensive gas price averages: Marquette ($3.40), Metro Detroit ($3.49), Benton Harbor ($3.57)

War in Iran

The U.S.-Israeli attack on Iran continued for a 10th day Monday, as President Trump and Prime Minister Benjamin Netanyahu vowed to press ahead with a military operation that appears to have no end in sight.

The war has rattled global markets, disrupted air travel and left Iran’s leadership weakened by hundreds of Israeli and American airstrikes. Interruptions to the production and movement of oil and gas from the Persian Gulf sent oil prices soaring to over $100 Sunday for the first time in three and a half years.

Fighting across the Middle East has intensified, with Prime Minister Benjamin Netanyahu promising "many surprises" in the next phase of the conflict. Meanwhile, Iran announced its new supreme leader: Mojtaba Khamenei, son of the country’s late supreme leader Ayatollah Ali Khamenei.