The Dow Jones industrial average fell 720 points on Monday as fighting continued, while the S&P 500 dropped 1.3% and the Nasdaq slipped 1.2%.
Compared to last week, gas prices have jumped more than 50 cents across several Southern California counties, according to AAA.
Some drivers encountered prices more than $8 at the pump.
Gas prices jump across SoCal as one LA station hits $8 a gallon
This comes as combat strikes on oil and gas facilities across the Middle East are fueling concerns of a global energy crisis. The chaos has forced many producers to reduce production as oil prices spike near $120 per barrel Monday.
Consumers like Mark from Burbank are feeling the pain of rising gas prices.
"It's crazy," he told Eyewitness News.
According to AAA, the average price for a gallon of gas nationwide has climbed to $3.47, up from $2.99 just one week ago. In Southern California, the average price has reached $5.15 per gallon - a jump of more than 53 cents.
"I had travel plans... but not anymore - like going to San Diego, Palm Springs, Las Vegas," he added.
Carlo, a rideshare driver, says the increasing cost is eating into his bottom line.
A woman who identified herself as Catherine spends up to $60 a week to drive from Burbank to South Los Angeles for work. She worries about her budget if prices keep jumping.
"I'm a teacher so I feel like I don't make enough to pay for gas and groceries, so it's a bit rough," she said. "I don't go out as often. I'm not going to the movies, I'm cooking at home."
President Donald Trump downplayed the rising costs, saying shortterm oil prices would "drop rapidly when the destruction of the Iran nuclear threat is over." He added that the increase "is a very small price to pay for the U.S. and the world, safety, and peace." But uncertainty remains over how long the conflict will last and what the ultimate objectives are.
Patrick De Haan of GasBuddy.com warned that the sudden spike in fuel costs could ripple across industries.
"Businesses may struggle to keep their doors open in light of transportation costs that have skyrocketed overnight. The price of jet fuel skyrocketing overnight, airlines warning that earnings will be diminished and that airfares would skyrocket," he said.
Roughly onefifth of the world's oil supply moves through the Strait of Hormuz along Iran's southern coast. The strait has been closed since the war began, and an Iranian official said Sunday it will not relinquish control until it achieves its desired results.
The prolonged closure is adding to global uncertainty, leaving businesses, travelers and consumers bracing for what comes next.