The escalating conflict between Israel and Iran has already driven up oil prices, as investors worry about disrupted oil supplies and a potentially wider regional war in the Middle East.
But experts don’t expect the higher prices — if they stick — to affect U.S. oil production, which has largely plateaued since reaching record highs in 2024.
“Producers aren’t necessarily going to jump in and make big investments based on the last twenty four hours,” said Patrick De Haan, a gasoline market analyst with the fuel-price tracking website GasBuddy. “They’ll probably be a little bit more calculated because they’re watching the situation, but I don’t think this event is going to be a catalyst for a major shift in U.S. oil production.”
Israel launched a surprise strike against Iran on Friday morning local time, and the two countries traded attacks all weekend. The Israeli Prime Minister’s office said 23 people have been killed in Israel since Friday. At least 224 have been killed in Iran, the country’s health ministry said Sunday, according to Iranian official media.
