EL PASO, Texas (KFOX14/CBS4) — Drivers in El Paso are feeling the sting at the pump as fuel prices climb amid ongoing tensions with Iran, and an expert warns prices could keep rising.
Economics professor Tom Fullerton from the University of Texas at El Paso said the conflict has disrupted global oil markets, including shipping routes near the Straits of Hormuz in the Persian Gulf.
“The two most important reasons are one, the war broke out, and there are missiles and drones and other types of weapons that are firing in and around the Straits of Hormuz,” Fullerton said.
Tom Fullerton, professor of economics at the University of Texas at El Paso. Jan. 2, 2026. Credit: KFOX14/CBS4
Fullerton also said the war has sharply reduced oil moving through the region.
“As a consequence of the war, approximately 90 percent of the traffic that would normally go through that part of the world has been closed off. And that has reduced the supply of oil that’s available to worldwide refiners,” Fullerton said.
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In El Paso, Fullerton said changes in crude oil prices can quickly translate into higher prices at local gas stations.
In terms of El Paso, every time the price of West Texas intermediate goes up by a dollar per barrel, that translates into about a 3-cent per gallon increase in the price of regular unleaded gasoline here.Given that, see, it’s probable that for the foreseeable future, gasoline prices for regular gasoline here in El Paso are going to oscillate between $3.30 per gallon and $4 per gallon for the foreseeable future.
Fullerton said another factor driving oil prices higher is severe damage to oil facilities.
Fullerton also said gas prices in El Paso have risen about 61 cents compared to 10 days ago.
If the current situation with Iran continues, Fullerton said it could lead the U.S. economy into a recession.
Some El Pasoans said the rising costs are already affecting their budgets.
“Oh, it’s crazy. It’s just getting pretty expensive nowadays,” one man said.
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A biker said the cost to fill up has jumped in just a week: “I was like, well that’s 21 bucks and like last week I just needed twelve bucks.”
A tourist from San Antonio, who said he drives an electric vehicle, described the trip as unusually costly.
“So to be honest, I drive an electric vehicle, but I’m from San Antonio, so the road trip from San Antonio to El Paso is pretty crazy. It was pretty expensive,” he said.
As prices continue to rise, Fullerton encouraged people to conserve fuel when possible and combine multiple trips into one.
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