Gas Spikes on Iran Tensions

Iran cut off oil exports to Britain and France, causing gas prices to spike.
3:50 | 02/20/12

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Transcript for Gas Spikes on Iran Tensions
The United States is feeling the shock -- of a showdown half a world away and if you filled up your tank today you felt it. Gas prices -- -- averaging three dollars and 56 cents a gallon than ever before this high this early in the year. And the blame lies squarely with Iran which angrily cut off oil experts to Britain and France and is causing a spasm in the markets. Causing oil prices to rise. So what happens next how much higher were gasoline prices go we said ABC Cecilia Vega. In search of some answers good evening Cecilia. Well Diane this is hitting drivers squarely in their wallets and it's hitting much earlier than usual take a look at this -- -- here at the station in Los Angeles. Are paying more than five dollars a gallon for premium gas -- don't see gas prices spike until May and June just before drivers hit the road for their summer vacation. Boats on the clothing books fifty but tentative -- thank you spend more getting to where they need they'll actually getting paid. What -- -- to celebrate presidents' day. With the highest gas. Prices ever seen this time of year. There rising at record speed to you up 25 cents from just a month ago last year prices mostly held steady from January to February clocking in at 314. The year before that they actually went down. April experts say it will only get worse we're looking at perhaps. Prices getting 2375. To 425 perhaps by April or may. The spike is being driven largely by smoldering tensions with the -- And some analysts predict -- Memorial Day the price at the pump could be a whopping five dollars a gallon. On average American household spent more than 4000 dollars on gas last year alone. Eight point 4% of their total budget that's double what they spent a decade ago. And the ripple effect of spiking prices is felt well beyond the -- He more expensive plane tickets. Higher heating bills and it doesn't end there the price of fruits and vegetables could go up as farmers pay more for gas for their tractors. Milk eggs goods made from petroleum prices fertilizer Cecil -- easily make out detergent even. Prescription drugs they may all be getting more expensive. There's a supply chain. And you know it's probably a matter of it's a matter of weeks perhaps months as those as those costs get get passed through. The immediate problem is at the pump. With prices like 396 a gallon in New York 353 near Lincoln Nebraska and 362 near Seattle what's a driver to do. For starters try not to fill up anywhere near -- highway. We went to this station near a freeway in Los Angeles where gas cost 495. A gallon. Just two miles down the road though prices are much cheaper 397 per gallon. Sometimes the road less traveled is the better value. That's the truth and the reason we see these price differences from those by the freeway for those just down the road it -- dances basic old competition. Gas station owners -- looking at by the reawakened simply charge more Diane because drivers don't have the time -- ability or the means to drive around to look for cheaper gas elsewhere. Well -- -- -- touch a lot of experts today and what -- say could turn this around change this trajectory. You know. Whether we hit five dollars a gallon is up for debate experts are split on that but if we do something that could. Pushed that off for a little while really has to do with this global impact that he talked about earlier. Tensions in Iraq at that region starts to calm down at all we could see these numbers start to. Stabilize making it come down a -- also Saudi Arabia Saudi Arabia if they increase their oil production it anyway that puts more to fight back on the market. Now a recent prices down here -- you.

This transcript has been automatically generated and may not be 100% accurate.

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