After a brief respite, the price of gas rises again.
On Monday, the average price at U.S. pumps rose to $4 a gallon, according to auto club AAA, as the war with Iran reignited, halting most shipping and impacting already depleted global refineries.
The price has risen 13 cents more than a week ago, when it averaged $3.87 nationwide.
It’s a return to the elevated prices seen this spring. In March, shortly after the United States and Israel attacked Iran, gasoline prices in the United States averaged $4 a gallon for the first time since 2022, after Russia invaded Ukraine. Prices surpassed $4.50 in May before gradually falling below the $4 threshold after the United States and Iran agreed to a provisional ceasefire.
The preliminary agreement did not hold and the conflict has escalated once again, with the United States this week reimposing a naval blockade of Iranian ports in the Strait of Hormuz, a vital waterway for transporting oil and gas. The blockade and strikes in the area have practically stopped shipping, driving up energy prices.
Brent crude, the international oil benchmark, rose above $90 a barrel on Monday, the highest level in more than a month. West Texas Intermediate, the US benchmark, was trading at $82 a barrel.
On Thursday, the average price of diesel rose above $5 a gallon, up 33 percent since the start of the war. On Monday, diesel cost $5.11 a gallon, about 23 cents more than the previous week.
The national average price does not reflect the wide range of prices across the country. Prices in many southern states, for example, are closer to $3.60 per gallon, while in California they are around $5.50 per gallon.
The price increases represent a conundrum for President Trump as the country approaches the November midterm elections, which will likely be a critical referendum on his performance. Economic anxiety is a priority for many voters.
The White House praised economic data released last week that showed consumer prices had fallen in June, although they were still 3.5 percent higher than the same period last year. Trump told reporters in the Oval Office: “Prices are coming down a lot and we’re doing a great job. And remember that for the midterms.”
But July seems to be yielding opposite results. There are several factors influencing price pressures, beyond rising oil costs as a result of the war in the Middle East. Many refineries in the United States that convert oil into different types of fuel operate at high capacities with little inventory. And there is a high demand for gasoline with summer travel.
