Topline
Gasoline prices in the U.S. rose above $4 per gallon on Monday for the first time in over a month as renewed fighting between the U.S. and Iran once again disrupted the flow of oil through the Strait of Hormuz and drove up crude prices once again.
Gas prices in the U.S. crossed the $4 mark for the first time since mid-June as renewed fighting between the U.S and Iran drove up global crude prices.
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Key Facts
According to AAA’s tracker, the national average gas price inched slightly above $4 per gallon on Monday—up from $3.87 per gallon last week.
National average diesel prices—which is used to fuel heavy equipment, trucks and agricultural vehicles—rose to $5.10 per gallon on Monday—up from $4.87 last week.
The rise in national average gasoline prices tracks with the jump in global crude oil prices—with the benchmark Brent Crude futures index briefly hitting $90 per barrel early on Monday.
While both gas and oil prices are not yet close to the peaks seen in May, the resumption of fighting has reversed a price slide triggered by the interim peace deal between the two countries.
The British Navy’s maritime monitoring agency, UKMTO, said a vessel in the Strait of Hormuz near the Omani coast was on fire after being struck by an unknown projectile—prompting the crew to abandon ship.
What Has Trump Said About Gas Prices Recently?
Gas prices topping the $ 4-per-gallon mark once again are likely to draw attention from President Donald Trump, who has previously expressed frustration over high gas prices. Last month, the president was accused of price gouging as the cost of gas at the pump hovered around $3.90 per gallon, despite crude prices dropping below pre-war levels after the interim peace deal. In a follow-up post, the President demanded that the price at the pump drop to as low as $2.50 per gallon—which is even lower than pre-war levels—and warned gas retailers of “big problems” if they failed to deliver. Last week the White House announced the launch of the so-called “Freedom Fuel Network,” to sell gas in New Jersey and Pennsyvania at $3.47 per gallon—substantially lower than average gas prices in the state. It’s unclear if this lower cost gas was being subsidized directly by the Trump administration and if the latest spike in prices will impact theses stations.
Tangent
Brent crude oil futures soared above $90 per barrel on Monday but have since settled around $88.10 after Iranian officials signaled openness to dialogue. Esmaeil Baqaei, Iran’s Foreign Ministry spokesperson, said the country had received proposals and ideas from various mediators to help quell tensions with the U.S., state media reported.