As the war with Iran stretched into its 12th day, the average price for a gallon of gasoline in Colorado Springs climbed further. Since last week, the price per gallon has increased 53 cents, according to AAA.

A gallon of gas averaged $3.57 in Colorado Springs on Tuesday, up from last week’s average of $3.04. Currently, the lowest price in the region is at a 7-Eleven at 7725 Fountain Mesa Road, where a gallon costs $2.49, according to GasBuddy.

Six of the region’s 10 cheapest options now exceed $3 per gallon. Colorado’s average is $3.53 while the national average is $3.54, according to AAA.

Gas prices typically increase seasonally as summer blends are brought into rotation. However, the 53-cent increase is due more to market volatility and reactivity, according to Patrick De Haan, GasBuddy’s head of petroleum analysis.

Rather than the usual 2-6-week delays of oil price fluctuations being felt at the pump, the current impact of the day’s news may be felt in 2-6 hours, De Haan said.

“The basis of markets, the basis on how oil prices work, generally is not futures, it is the spot markets,” he said. “If oil goes up $10 a barrel today, the wholesale cost changes tonight because everything is based on spot prices.”

While using a spot market can generally work in everyone’s favor, De Haan said it can swing violently.

The price of West Texas Intermediate (WTI) oil, a major benchmark, peaked at about $117 per barrel on Sunday, according to oilprice.com, which tracks major oil indexes. As of 1:30 p.m. Tuesday, a barrel of WTI crude oil was about $86, according to the site.

Another major benchmark, Brent Crude, also peaked on Sunday at about $118 per barrel. On Tuesday, it traded at $90.50, according to oilprice.com. 


The last time a barrel of oil reached triple-digit prices was between March and July 2022, according to CNN. After President Donald Trump indicated the U.S. was ahead of schedule in achieving its war goals — which remain short-term goals, according to the Department of Defense — oil prices declined somewhat, according to oilprice.com.

Crude prices now are more in line with April 2022, according to the website.

Some of the volatility of oil prices is due to supply and demand. By pledging to shut down the Strait of Hormuz, Iran is attempting to close market access to four of the top 10 oil-producing nations worldwide. Kuwait, Iraq, the United Arab Emirates and Iran transport approximately 20 million barrels of oil per day — 20% of global production — through the Strait to markets worldwide.

Despite President Donald Trump and Israeli leaders indicating they may be looking for an off-ramp, the Strait of Hormuz remains dangerous for ships.

Few companies are willing to accept the risk of transiting it, De Haan said. This increases market pressures on other suppliers, driving prices up.

“You don’t sell to the lowest bidder; you don’t sell to the bidder closest to you. This is capitalism. You sell to the highest bidder,” he said.

And there’s another issue: Iran could still attack ships sailing through the Strait of Hormuz, even if the U.S. offers to escort vessels with warships – something it did in the 1980s. But De Haan is dubious, likening that to a park ranger at Yellowstone holding a tourist’s hand as they walk near a grizzly bear.

“There’s no confidence right now in sailing through the Strait of Hormuz because it’s kind of grizzly headquarters,” he said. “If that outlasts the war, that’s going to be hugely problematic for gasoline.”

Barring any catastrophic attacks on oil infrastructure, De Haan is optimistic. He thinks there might be pennies of relief “here and there” by early next week.

“It’s hard to predict right now,” he said. “I mean, this isn’t really about petroleum, it’s about war, and that is less predictable.”