California is seeing the average price of a gallon of gas already over $6, but there's more uncertainty as the last tanker of oil from the Middle East arrives in the Golden State this week.
The Los Angeles Times reported Sunday that the new Corolla, which left the Middle East before the war with Iraq, is delivering about 2 million barrels of crude oil from Iraq to Long Beach. It was the last scheduled shipment to pass through the Strait of Hormuz.
On Tuesday, Vice Chair of the California Energy Commission, Siva Gundam, told lawmakers that the state can meet fuel demand for the next six weeks with its current supplies.
California has the highest gas prices in the U.S. It gets a third of its oil from the Persian Gulf, and now it will have to find new sources to replace it. Compared to other states, California gets significantly more oil from abroad.
While oil prices have risen in recent weeks, current supplies are still not heavily impacted because markets are continuing to accept oil that was already in transit when the conflict began.
"The war with Iran and the closing of the Strait of Hormuz were actually a buffer because all those tankers were at sea when the Strait of Hormuz was closed," Michael Ross, a professor at the University of California, Los Angeles, told ABC7.
"So all that supply was still going to consumers. That's been the last shipment that's been keeping prices relatively stable. That's what we should be worried about."
The U.S.-Israeli war with Iran has significantly disrupted the global oil market and sent gas prices soaring worldwide. The American Automobile Association reported that the national average rose to $4.54 on Tuesday, while the average price in California was $6.16. Prices are nearly at their highest in four years.
The price of gas is often a major topic of debate in California politics, including during Tuesday's gubernatorial debate. Democratic candidates largely blamed Donald Trump's war with Iran for the recent price increases, while Republican Steve Hilton pushed back on those arguments, citing California's regulations.
California Governor Gavin Newsom harshly criticized Trump for the rising prices.
"The inconvenient truth of MAGA: Since the war started, gas prices have risen more in the rest of the country than in California," Newsom said. "Without a plan. Without a solution. And Americans are paying the price – every day."
On Wednesday, stock markets rose and oil prices fell after Donald Trump said that if Iran agreed to a deal with Washington, the war would end and the Strait of Hormuz would be "open for business for everyone."
Meanwhile, economic data shows that rising fuel prices are hitting low-income Americans the hardest. Americans with low incomes have cut back on gas consumption since the war with Iran began, but they're still spending more at the pump, according to a report from the New York Federal Reserve Bank.
