Texas gas prices: Drivers in Austin react to historic spike due to Iran conflict

Oil prices swing over Iran conflict

The conflict in Iran is threatening the global oil supply, and drivers are starting to notice. Escalating tensions between the U.S. and Iran are triggering a sharp increase in fuel costs nationwide.

AUSTIN, Texas - A perfect storm for drivers: Fuel prices have surged this week at one of the fastest rates in years.

The conflict in Iran is threatening the global oil supply, and drivers are starting to notice.

Escalating tensions between the U.S. and Iran are triggering a sharp increase in fuel costs nationwide. In Texas, the average price at the pump surged to $3.13 on Monday, according to AAA.​

RELATED COVERAGE: Texas gas prices top $3 statewide as Iran war drives historic spike

Local perspective:

Jaidan Servati traveled to Austin for Spring Break. 

"I go to college in Abilene, and when I was leaving, the gas prices were like $2.89," Servati said. "Then I'm coming home and seeing that they're $3.20, and I was like, OK, I thought Abilene's was high, but this is a lot higher."

The geopolitical conflict, combined with the seasonal shift to more expensive summer-blend gasoline and rising spring break demand, means prices may continue to rise.

Ava Williams drove from Dallas to Austin for Spring Break. 

"I had heard it could get all the way up to five dollars, so that kind of scares me just because, like, it is spring break," Williams said. "I'm driving all over. I plan to go to Gulf Shores this coming Friday and so driving even further, so I am a little nervous about it."

Drivers are paying about $3.19 at some gas stations in downtown Austin, which is up more than 50 cents from a week ago.

"My car normally takes about $20 to fill up and I get 13 gallons on it back in Dallas, and then this past week it cost about $40 to fill up," Williams said. "So that was a huge increase for me."

Big picture view:

Iran produces only about half as much oil as Texas. However, 20 percent of the world’s petroleum supply is shipped daily through the Strait of Hormuz. Any disruption to this critical route can send costs climbing—and fast.

Todd Staples is the President of the Texas Oil & Gas Association.

"The fact that Iran is attacking its Gulf state neighbors is a major factor as well," Todd Staples said. "And the fact that they've been defiant on having reasonable conversations to bring these activities to a conclusion have all upset the global marketplace."

Still, experts say the U.S. is in a good position because it produces more oil than any other country in the world. Texas alone produces nearly 6 million barrels a day.

Latest on Iran strikes

Iran has selected a new leader as strikes in the Middle East continue. Also, the cost per barrel of oil climbed Monday to its highest point since 2022, before falling back down again.

"People were lining up in energy needs at the doorstep of Texas before this occurred," Staples said. "And so moving forward, we're well positioned. Energy security being national security is not just a talking point; it is a tactical advantage."

President Donald Trump said he is directing a federal agency to offer financial support for ships moving through the Persian Gulf. If necessary, the U.S. Navy will escort tankers to ensure energy supplies keep moving.

Oil prices rose above $100 a barrel for the first time since 2022, bringing gas prices along for the ride. However, the situation remains highly fluid. Oil prices whipped from nearly $120 a barrel Monday morning back down to below $90 by the afternoon.