Gas prices increased by nearly $0.50 over the past week and could now rise to $4 per gallon in the coming weeks, as tanker traffic through the Strait of Hormuz has virtually halted.

On Sunday evening, the price of oil (CL=F) crossed $110 per barrel as traffic through the key transportation route, which typically handles one-fifth of the world's oil supply, ground to a halt amid threats of strikes from Iran.

Every $10 increase in crude oil prices represents a $0.25 increase at the pump for Americans.

"I believe there is roughly an 80% chance the national average price of gasoline reaches $4 per gallon within the next month- or sooner," GasBuddy Patrick De Haan wrote on Sunday evening. "In the immediate term, the national average of $3.45 per gallon could climb to roughly $3.75โ€“$3.95 this week alone."

Read more: How oil price shocks ripple through your wallet, from gas to groceries

Should prices surpass $4 per gallon, it would mark the first time since August 2022 that Americans faced such staggering prices at the pump. A week ago, the national average price per gallon was $2.99; now, it's $3.47, according to AAA.

To put the rapid increase in context, Americans could collectively spend an average of $187 million more per day at the pump than they did last week.

Diesel costs are rising even faster. De Haan believes there's an 85% chance the cost of diesel could reach $5 per gallon nationally this week for the first time since Dec. 7, 2022.

The current national average for diesel is $4.66, up from $3.77 a week ago, which carries broader implications for consumers. As the conflict continues, the higher cost of transporting goods drives up prices for Americans at the store.

That would impact everything from groceries to clothes to construction materials, with a majority of goods transported by freight in the US.

Now, the potential energy crisis has sparked concerns of stagflation on Wall Street, as oil prices jump and labor data came in worse than anticipated from the US Bureau of Labor Statistics.

"Concerns about stagflation are rising in the US," JPMorgan analysts wrote in a note to clients on Monday.

Nigel Green, CEO of deVere Group, also noted that this "toxic combination" of rising inflation and slowing economic growth is a "very real possibility."

โ€œOil is the ignition point," Green wrote. "Energy prices surge this quickly, inflation accelerates almost everywhere. Businesses face higher costs, households face higher bills, and growth is squeezed at precisely the same time."

Wall Street will be closely watching a fresh inflation reading this week. Though Wednesday's Consumer Price Index print, which looks back at February's inflation data, covers the period before the war in the Middle East began.

"Amid concerns about inflation due to the conflict in Iran, if inflation exceeds expectations, stagflation fears will probably intensify and weigh on the equity market," JPMorgan wrote.

Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.