Chicago-Area Gas Prices Spike Amid U.S.-Israel War With Iran

Drivers can expect to pay 10-30 cents more per gallon this week as oil prices surge due to disruptions in the Strait of Hormuz.

Published on Mar. 2, 2026

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Drivers in the Chicago area are facing higher gas prices this week as the ongoing U.S.-Israeli war with Iran has disrupted oil shipments through the Strait of Hormuz, a critical global chokepoint. Oil prices have spiked nearly 8% as a result, and experts project gradual increases of 10-30 cents per gallon at the pump in the coming days.

Why it matters

The Strait of Hormuz sees about 20% of the world's oil pass through it daily, so any disruptions to shipping in the region have a major impact on global oil supplies and prices. This is especially problematic for Chicago-area drivers, who are already facing rising gas prices ahead of the summer driving season.

The details

Oil shipping companies are diverting tankers and experiencing delays as a result of the conflict, which could add 1-2 weeks to the travel time needed to bring oil to refineries. Analysts warn that a prolonged conflict could lead to even higher prices, potentially reaching $4 or $5 per gallon in the Chicago area.

  • On Monday, the price of crude oil spiked almost 8 percent.
  • As of Monday afternoon, gas prices in the Chicago area were hovering around $3 per gallon.

The players

Phil Streible

Chief market strategist with Blue Line Futures.

Mark Fishbein

A driver in the Chicago area.

Duke Yoon

A driver in the Chicago area.

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What they’re saying

“If you have a longer duration open-ended conflict going on, many tankers will just completely avoid the Straits of Hormuz. That's going to tack on at least a week to two weeks of travel in order to bring this oil back online that could be refined and turned into gasoline.”

— Phil Streible, Chief market strategist (cbsnews.com)

“People who work for a living in driving, be it truckers or people who have to commute and all rest of it, it'll be a hardship, obviously.”

— Mark Fishbein, Driver (cbsnews.com)

“Right now, it's okay, but if it's like $4.00 or $4.50 or $5.00, then yeah, definitely, I would notice it more.”

— Duke Yoon, Driver (cbsnews.com)

What’s next

Streible recommended drivers top off their tanks now before prices rise further, as consumers wait to see how long the conflict with Iran will last.

The takeaway

This situation highlights the vulnerability of Chicago-area drivers to global oil market disruptions, as even a regional conflict can quickly translate into higher prices at the pump. It underscores the need for greater energy security and diversification to insulate consumers from such price shocks.