Will South Dakota Gas Prices Go Up After the Attack on Iran?

Over the weekend, the United States Military, along with the Israeli Air Force, hit the Islamic Republic of Iran, killing the Supreme Leader and destroying much of the rogue nation's infrastructure and abilities to make nuclear weapons. Iran then responded by firing missiles at several cities in Israel, along with US bases around the Middle East, including in Saudi Arabia, Qatar, Kuwait, and Bahrain.

Obviously, the geopolitics of this situation are evolving all the time, but one side effect of this conflict that every South Dakotan will notice is gas prices.

The country of Iran lies right along the Persian Gulf, and more importantly, the Strait of Hormuz. It's the tiny body of water that provides passage from the Gulf into the open ocean. And at the time of this writing, it's essentially shut down, blocked from allowing ships to export oil. The question is "Will This Affect South Dakota Gas Prices?" As it turns out, to answer that question, we have to dig a little deeper.

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Our worldwide oil trades on a global market, and that market is set to open Sunday evening. The current price of crude oil on the open market is around $67; however, experts warn that by Monday morning, oil could jump to $73 a barrel.

Kalshi prediction markets currently see a 79% likelihood that U.S. crude oil hits at least $73 per barrel or more. U.S. crude closed at $67.02 per barrel on Friday, having run up 17% so far this year in anticipation of a possible Iran attack. Energy futures begin trading at 6:00 p.m. ET.

-CNBC Website

What does that mean for South Dakotans? Prices could likely jump within a few days if crude oil does jump to the predicted $73 a barrel.

For more information on what the potential impact of the strikes on Iran could mean here in the United States, check out the YouTube video below from CBS News.