U.S. GAS PRICES SOAR ABOVE $4 PER GALLON AMID RISING TENSIONS WITH IRAN
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By: Muftau Fatimo
The American Automobile Association (AAA) reported on Tuesday that the average price of gasoline at U.S. pumps has climbed past $4 per gallon, reaching its highest level in nearly four years amid tensions with Iran.
Gas prices, which were below $3 per gallon at the end of February, mark another challenge for President Donald Trump following his order of strikes on Iran, a conflict that has raised concerns about the global economy.
According to AAA, the average price stood at $4.018 per gallon Tuesday morning.
The last time U.S. gas prices exceeded $4 was in August 2022, the U.S. Energy Information Administration notes.
In mid-2022, prices soared to $5 a gallon in the midst of the Covid-19 pandemic and after Russia’s invasion of Ukraine.
Gas rices climbed to $5.88 per gallon in California — the nation’s most expensive gasoline market, the AAA said, followed by Hawaii ($5.45) and Washington ($5.34).
The price jump heightens the political risks for Trump several months before crucial midterm elections.
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Iran has effectively blocked the Strait of Hormuz to adversaries the United States and Israel or anyone doing business with them.
The waterway is responsible for carrying around a fifth of global crude oil and liquefied natural gas in peacetime.
Trump expressed confidence that a negotiated settlement would soon be reached but warned that if it was not — or if Iran continued to block the strait to most sea traffic — US forces would “blow up” Kharg Island and all of Iran’s oil wells and electricity generation.
Oil prices slipped on Tuesday and stocks were mixed as investors weighed the report indicating he could make a deal even if the key strait remained closed.
Both main oil contracts fell almost one percent Tuesday but were both still well above $100 a barrel.
Surging prices at the pump will also shock car-loving Americans as the summer vacation season nears, with prices set to rise even higher because of the Iran conflict.
The US’ primarily imports oil from Canada and Mexico, so it is not heavily impacted by any shortages in the Middle East caused by the turmoil, but prices have risen in any case because of globally connected energy markets.
AFP
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