U.S. gas prices have risen to an average of $4 a gallon again as the U.S. and Iran launched more attacks. The price is a national average, and gas prices first went over $4 a gallon on average at the end of March.
The average price of a gallon of regular gasoline in the U.S. has climbed back to $4, according to the motor club federation AAA. This comes as the U.S. and Iran move closer to resuming an all-out war and Iran resumed attacks on ships trying to exit the strait and the US retaliated and put a blockade on Iranian ports.
Rising Prices and Geopolitical Tensions
Gas first crossed the $4 mark on March 31, a month into the conflict. Prices dipped below that in mid-June and continued to fall as crude oil prices eased when the U.S. and Iran reached an interim deal. Prices at the pump began to climb again after Iran resumed attacks on ships trying to exit the strait and after the US retaliated and put a blockade on Iranian ports. Indiana has the lowest average price at $3.35 a gallon, while California is the most expensive at $5.49. Washington state and Hawaii also have an average price above $5 a gallon, according to AAA.
Brent crude, the international standard, fell slightly by Monday morning trading in the U.S. — down $1.64 to $86.46 per barrel. But that’s still much higher than prewar levels, when crude was going for close to $70 a barrel. Meanwhile, benchmark U.S. crude dropped $1.87 to $79.91 per barrel. Brent crude briefly climbed above $90 a barrel for the first time since early June on Monday.
For more on this story, see US Launches Fresh Strikes on Iran Amid Escalating Tensions.
Market Reactions and Analyst Insights
White House spokesperson Taylor Rogers attributed the price surge to the terrorist Iranian regime’s ability to attack commercial vessels,
stating that U.S. military actions would eventually drive prices back to pre-conflict levels. As the U.S. military degrades the terrorist Iranian regime’s ability to attack commercial vessels and disrupt the free flow of energy through the Strait of Hormuz, oil and gas prices will plummet back to pre-conflict levels,
Rogers said. President Trump remains committed to unleashing American energy dominance, cutting costs, and putting more money back in the pockets of hardworking American families,
Rogers added.
Independent oil analyst Tom Kloza warned that prices would remain elevated. That’s baked in,
he said, citing the global nature of the gasoline market and recent disruptions, including Ukraine’s drone attacks on Russian refineries. Russia has had to import gasoline, whereas they’ve been a net seller for many, many years,
Kloza explained. It has raised fears in markets of a refined product shortage. And no matter how much gasoline we make here, it is a global market.
This follows our earlier report, US Troops Killed in Iranian Attack on Jordan Base.
Gasoline prices are also being affected by peak driving season in the United States, where demand for gas is at a maximum. The average price is up about 13 cents over the past week, and the recent run-up in gasoline futures indicates prices will rise another 10 to 25 cents over the next week.
Political Implications and Public Concerns
High pump prices are a headache for President Donald Trump and the Republican Party ahead of midterm elections in November. High gas and oil prices can help push up prices for groceries and other goods.
Read also: US Strikes Iran for Seventh Straight Night as Strait Conflict Escalates.
Trump’s administration has emphasized its commitment to unleashing American energy dominance,
with Rogers stating, President Trump remains committed to unleashing American energy dominance, cutting costs, and putting more money back in the pockets of hardworking American families.
However, experts say it is likely to take months, if not longer, for gas to get back to the $2.98 national average from before the war. Gas prices typically fall much slower than they go up.
The trajectory of gas prices will depend on the outcome of the conflict. Stronger demand is expected to keep upward pressure on gas prices through Labor Day.
Keep reading
