Gas prices in the United States have risen above $4 per gallon nationally for the first time in over a month, driven by rising oil costs and escalating clashes between the U.S. and Iran.
| PULSE POINTS |
❓ WHAT HAPPENED: Gas prices in the United States rose above $4 a gallon again following increased tensions between the U.S. and Iran. 📺 DETAIL: On Monday, the national average price for a gallon of gas rose to $4.003, according to data from the American Automobile Association (AAA) Fuel Prices tracker. This represents the first time in over a month that the national average price of gas has exceeded $4. The increase in the price of gas follows renewed clashes between the U.S. and the Islamic Republic of Iran, particularly over control of the Strait of Hormuz, a virtual chokepoint for international oil and fertilizer exports. Approximately 20 percent of the world’s oil exports travel through the Strait of Hormuz. The average price of gas continues to vary by state, though the data suggests an overall increase. This coincides with an increase in the national average for diesel, which rose to $5.11 on Monday. Significantly, diesel prices affect the cost of goods transported by trucks. The rise in gas prices is a consequence of the rising cost of oil. The cost of Brent crude, the global benchmark, rose to $90.95 per barrel, a 3.2 percent increase, while benchmark U.S. crude oil rose to $84.04, a 2.8 percent increase over the same period. 🎯 IMPACT: Gas prices sharply rose following the outbreak of the Iran War in late February. Prices peaked at $4.56 in May but moderated following news of a memorandum of understanding between the U.S. and Iran in June. This has since unraveled. Rising fuel costs place financial strain on American households, which is likely to exacerbate voter concerns regarding affordability and influence voting decisions as the country prepares for midterm elections in November. |
Join Pulse+ to comment below, and receive exclusive e-mail analyses.
