The jump in oil prices could lead to higher gas prices as soon as this week.
The price of oil surged Sunday after U.S. and Israeli strikes on Iran, which killed its supreme leader.
U.S. crude oil soared 12%, while Brent, the international oil benchmark, surged 14% after trading began at 6 p.m. ET. Sunday.
Even before the weekend's escalation, oil prices had risen 17% this year off President Donald Trump’s ramped-up rhetoric against the Iranian regime. The Trump administration has also ratcheted up sanctions on Iran in recent months.
While Iran's oil production is estimated to be less than 5% of global output — most of which goes to China because of U.S. sanctions — it has major influence over the Strait of Hormuz, a critical passageway for more than 20% of the world's daily oil demand.
A closure or restriction there can quickly rock the global oil market, and it would be among the worst-case scenarios for the oil market, longtime industry analyst Andy Lipow said Sunday.