Oil prices jumped nearly 10% after U.S.-Israel strikes on Iran over the weekend, raising gas prices and potentially impacting Corpus Christi\u2019s energy sector.<\/p>\n
CORPUS CHRISTI, Texas \u2014 The escalating conflict between the United States, Israel and Iran is already pushing oil prices higher \u2014 a development that could have major implications for drivers, the Port of Corpus Christi and South Texas\u2019 energy industry.<\/p>\n
RELATED: Breaking Down President Trump’s visit to Corpus Christi<\/a><\/p>\n Oil prices rose nearly 10% following weekend strikes involving U.S. and Israeli forces, triggering concerns about global supply disruptions. The spike is being closely watched here in the Coastal Bend, where the economy is deeply tied to energy production and exports.<\/p>\n Roughly 20% of the world\u2019s oil and liquefied natural gas moves through the Strait of Hormuz, a narrow shipping lane between Iran and Oman that is about 21 miles wide at its narrowest. The waterway is one of the world\u2019s most critical energy chokepoints, and any disruption there can quickly reverberate through global markets. On Saturday, Reuters reported<\/a> that Iran\u2019s Revolutionary Guard warned vessels not to transit the strait \u2014 effectively curtailing traffic and stoking fears of broader supply impacts.<\/p>\n Dr. Hans Schumann, associate Professor of Economics at Texas A&M – Kingsville, says petroleum-related goods – like gasoline – tend to see immediate price swings during geopolitical shocks.<\/p>\n \u201cThe things that are very, very closely related to petroleum will see an almost immediate increase in price,\u201d Schumann said. \u201cBut that will come down as quickly as it goes up.\u201d<\/p>\n Experts caution that short-term price spikes do not automatically translate into increased drilling activity in Texas oil fields.<\/p>\n \u201cIt\u2019s considered increasing, but highly volatile right now,\u201d Andy Bennett, President of the Corpus Christi chapter of Oilfield Connections International, said. \u201cYou won\u2019t see a lot of people just move and say, \u2018Oh, well, it\u2019s $80 a barrel, and I\u2019m going to make more money.\u2019 They\u2019re looking at the long-term average before increasing production, and rig counts usually trend six to 12 months behind.\u201d<\/p>\n Still, long-range projects such as the Port of Corpus Christi’s expansion, are expected to continue regardless of short-term volatility.<\/p>\n \u201cThose are based on longer-term funding plans,\u201d Bennett said. \u201cThose projects are going to continue to position ourselves as the number one exporter in the U.S.\u201d<\/p>\n If the conflict becomes prolonged and significantly disrupts Middle Eastern oil infrastructure, some analysts say South Texas could see increased domestic production \u2014 potentially boosting the regional economy.<\/p>\n \u201cLocally, we may see another oil boom,\u201d Schumann said. \u201cWe\u2019ve been increasing natural gas exports as well. We hate to think of war being something that would be good for us economically, but in South Texas, one could make an argument that it does.\u201d<\/p>\n Both experts emphasized that the length and severity of the conflict will ultimately determine whether price increases are temporary or sustained.<\/p>\n For now, drivers may continue to see fluctuations at the pump as global markets react to rapidly developing events overseas.<\/p>\n