On the Dash: - Rising fuel prices are likely to accelerate demand for fuel-efficient, hybrid, and electric vehicles while softening interest in larger trucks and SUVs. - Inventory mix and days’ supply should be closely monitored to avoid overexposure to slower-moving segments. - Used-vehicle pricing can shift quickly, creating opportunities to capture margin on fuel-efficient models. - Fixed operations could see increased demand as consumers delay purchases and extend ownership cycles. A sharp rise in global oil prices, driven by escalating geopolitical tensions in the Middle East and supply disruptions tied to the Strait of Hormuz, is beginning to ripple through the U.S. economy, creating immediate implications for auto retailers. Crude oil prices have climbed back above $100 per barrel following stalled diplomatic efforts between the U.S. and Iran, raising concerns about prolonged supply constraints, according to a Reuters report. Since the Strait of Hormuz handles a considerable share of global oil shipments, any disruption has an outsized impact on fuel costs worldwide. For dealerships, the effects are already materializing at the pump, as U.S. gas prices have moved above $4 per gallon in many regions, with diesel climbing even higher and expected to remain elevated for months, according to recent government and industry forecasts. That shift is quickly altering how consumers approach vehicle purchases. Higher fuel costs are increasing the total cost of ownership, putting pressure on household budgets and reducing affordability. As a result, dealers can expect a near-term shift in demand away from full-size trucks and large SUVs toward smaller, more fuel-efficient vehicles, including hybrids and electric models. Early indicators from global markets show a measurable increase in EV interest following recent fuel price spikes, a trend that could carry into the U.S. if elevated prices persist. At the same time, volatility in fuel prices is creating