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The average price of gasoline in the United States has climbed back above $4 a gallon after fresh US military strikes on Iran reignited concerns over global oil supplies, reversing weeks of easing fuel costs and adding to inflation worries ahead of November’s midterm elections.
According to the American Automobile Association (AAA), the national average price of regular gasoline rose above the $4-a-gallon mark, up about 13 cents from a week earlier and sharply higher than the $3.14 average recorded during the same period last year.
The latest jump comes as renewed fighting between the United States and Iran has once again disrupted energy markets, with traders pricing in the risk of prolonged supply disruptions from West Asia. Crude oil prices have rallied in recent weeks after Washington intensified airstrikes against Iran and Tehran retaliated with attacks on US allies in the region, raising fears over the security of oil shipments through the Strait of Hormuz.
Brent crude, the global benchmark, traded between $86 and $91 a barrel on Monday, compared with around $72 at the beginning of July.
Hormuz disruptions fuel oil market jitters
Energy markets had briefly stabilised after Washington and Tehran reached an interim agreement last month aimed at reducing hostilities and restoring shipping through the Strait of Hormuz.
However, the collapse of that understanding has renewed uncertainty over one of the world’s most important oil transit routes, through which around one-fifth of global crude supply passes during normal times.
Trump faces renewed pressure over fuel costs
The resurgence in gasoline prices presents a political challenge for President Donald Trump, who had repeatedly touted lower fuel prices as one of his administration’s economic achievements.
Last month, Trump had also expressed frustration that retail gasoline prices had not fallen as quickly as crude oil prices after energy markets briefly stabilised.
The White House said on Monday that oil and gasoline prices would eventually decline as US military operations weaken Iran’s ability to threaten shipping through the Strait of Hormuz.
“President Trump remains committed to unleashing American energy dominance, cutting costs, and putting more money back in the pockets of hardworking American families,” a White House spokesperson said.
However, analysts warn that sustained geopolitical tensions could keep oil prices elevated even if outright military conflict subsides.
Diesel and transport costs also rise
The rise in energy prices extends beyond gasoline.
According to AAA, the national average diesel price climbed to nearly $5.11 a gallon on Monday from $4.88 a week earlier.
Higher diesel prices typically increase freight and logistics costs, putting upward pressure on the prices of groceries, consumer goods and other essentials.
Brown University’s Watson School of International and Public Affairs estimates that American households have incurred more than $71 billion in additional gasoline and diesel costs since the conflict began earlier this year.
Recovery could take months
Energy analysts caution that even if hostilities ease, restoring normal oil production and shipping flows could take considerable time.
S&P Global Energy has previously projected that crude production and exports from the Persian Gulf may not fully recover to pre-conflict levels until at least the first quarter of 2027.
That suggests fuel prices could remain volatile in the coming months, with any further escalation in the conflict likely to amplify risks for global energy markets and consumers alike.
With inputs from agencies.
