The average price of gas in the Denver area rose by 28.2 cents per gallon last week, with one analyst saying markets will now begin reacting to the war in the Middle East between the U.S. and its ally Israel, and Iran.

According to a survey of 844 Denver gas stations, the average price of gas climbed to $2.78 per gallon, GasBuddy said in a Tuesday news release.

Denver’s price increase far outpaced that seen across the U.S., with the national average increase being just 5.6 cents per gallon last week, though the new average price of $2.94 per gallon is still higher than the Mile High City’s, according to GasBuddy.

“Looking ahead, markets will now begin reacting to this weekend’s U.S.–Iran attacks, which have elevated geopolitical risk premiums even in the absence of immediate supply disruption,” said Patrick De Haan, head of petroleum analysis at GasBuddy, in the release. “Oil prices have firmed as traders assess the potential for further escalation, and while fundamentals such as inventories and refinery activity remain important anchors, the risk of broader instability — particularly involving key transit routes — has injected fresh uncertainty into energy markets.”

De Haan also noted in a public webinar Tuesday that much of the uncertainty about the current conflict in Iran revolves around oil and gas shipments within the Strait of Hormuz, a passage from the Persian Gulf located on the southern end of the country in between it and the United Arab Emirates.

“We’ve seen attacks already in the Strait of Hormuz, and that’s become really the focal point for what’s happening in the Middle East,” De Haan said. “It’s caused insurance rates to skyrocket, it’s causing vessels to park … These crude carriers can handle 2-4 million barrels of oil, so we’re talking a cargo potentially valued at $150-$400 million.”

De Haan said that he expects the national average to rise another 15-30 cents in the next few weeks, but added that it could change dramatically given any new developments in the region.

Despite the nearly 30 cent per gallon increase from the previous week, Denver’s increase was only 23.9 cents per gallon higher than the price from the same time a month prior, GasBuddy said the release. That bucked the pattern exhibited by the national average, which rose 5.6 cents per gallon in the last week but 7.8 cents per gallon from a month prior.

The price recorded Monday was the third highest per gallon in the last five years.

The city’s average price per gallon also remains lower compared to that in Fort Collins ($2.79) and Colorado Springs ($2.80), as well as the national average ($2.94), according to the release.