Gasoline Prices Exceed $4 Again in America Amid Resumed War

SadaNews - Gasoline prices at fuel stations in the United States have surpassed the $4 per gallon threshold today, Monday, following the renewed military strikes by the United States on Iran, which has led to further disruption in energy flows through the Strait of Hormuz, a vital route for global oil supplies.

The national average retail price for gasoline has increased by over 30% since the U.S. and Israel opened the doors to war on Iran at the end of February. According to data released by the American Automobile Association, the average price per gallon today, Monday, reached $4.0030.

It is noteworthy that fuel prices vary in some states compared to others, with higher prices in states with wealthier populations, such as California.

The last time gasoline prices exceeded $4 per gallon, a price that represents a financial burden on many families, was in late March after Iran disrupted shipping through the Strait of Hormuz. Prices then dropped below this threshold in June after the U.S. and Iran settled on a memorandum of understanding to end the war.

Prior to the war, about 20% of the world's oil and liquefied natural gas supplies passed through the strait.

The rise in gasoline prices has become a source of political tension for U.S. President Donald Trump and the Republican Party, which will soon enter an election campaign to maintain its slim majority in Congress during the upcoming midterm elections in November.

Gasoline prices have increased in tandem with a rise in crude oil prices, which jumped by about 16% this week after the ceasefire between Washington and Tehran collapsed in early July. Retail fuel prices and crude oil prices typically move in the same direction, as crude represents the main cost of producing fuel.

Additionally, the decline in Russia's refining capacity, due to Ukraine's intensification of attacks on energy infrastructure, has contributed to rising energy prices.

Prices have also received a boost from declining U.S. fuel inventories, as government data showed that U.S. inventories reached 210.5 million barrels last week, which is about 1.5 million barrels lower than the 5-year average.