Gas prices are displayed at an Arco gas station in Los Angeles, California. AFP
Spiking gas prices, up from less than $3 at the end of February, represent the latest challenge for President Donald Trump after coordinated US and Israeli strikes on Iran ignited a war that has drawn widespread Iranian retaliation and threatened to drag down the global economy.
The average price was $4.018 per gallon as of Tuesday morning, the AAA said on its website. The last time prices were above $4 was in August 2022, according to the US Energy Information Administration.
California remains the nation’s most expensive market at $5.88 per gallon, followed by Hawaii at $5.45 and Washington at $5.34, AAA data show. In mid-2022, prices soared to $5 a gallon amid the Covid-19 pandemic and following Russia's invasion of Ukraine.
The price jump adds to political pressure on Trump just months before crucial midterm elections.
Iran has effectively blocked the Strait of Hormuz to adversaries including the United States and Israel and anyone doing business with them. The waterway carries about 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, which indicated Trump could strike a deal even if the key strait remained closed. Both main oil contracts fell almost 1 percent Tuesday but were still well above $100 a barrel.
Surging prices at the pump will also affect Americans as the summer vacation season nears, with costs expected to rise further because of the Iran conflict. While the US primarily imports oil from Canada and Mexico and is not heavily reliant on Middle East supplies, prices have climbed due to globally connected energy markets.
*This story was edited by Ahram Online.
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