Yesterday, International Monetary Fund (IMF) Chief Christine LaGarde warned that escalating tensions in the Middle East could drive oil prices to a whopping $160 a barrel.
As of today, oil prices are at $120 a barrel with the average gas prices nationwide being $3.86 per gallon. Using ratios and proportions, if the price of oil goes to $160 per gallon, then the average price for gas throughout the USA would skyrocket to $5.15 per gallon.
This price increase seems inevitable because the only way that the price speculation would decrease the cost of oil is if conflict ceases in the Middle East. When has the Middle East ever been free of conflict? Never.