US gasoline tops $4 as Middle East tensions rise
Fuel prices surge past $4 per gallon amid supply fears linked to Strait of Hormuz disruptions.The national average price for gasoline in the United States crossed the $4 per gallon mark on Monday as escalating tensions in the Middle East tightened global oil supply expectations.
Prices later eased slightly, standing at $3.950 per gallon, according to GasBuddy, and $3.990 per gallon, according to AAA, but remained near the key threshold closely watched by consumers and policymakers.Analysts said the surge reflects mounting concerns over crude supply disruptions linked to the Strait of Hormuz, a critical global oil transit route.
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GasBuddy’s head of petroleum analysis, Patrick De Haan, said gasoline and diesel prices are climbing to multi-year highs due to the “effective closure” of the strait, which is curtailing the flow of millions of barrels of crude oil daily.He described the situation as volatile and unpredictable, warning that upward pressure on fuel prices is likely to persist as long as supply constraints continue.
De Haan forecast that gasoline prices could remain above $4 per gallon, with diesel potentially climbing closer to $6 unless geopolitical conditions improve.Rising fuel costs are already affecting consumer spending patterns. Americans have spent nearly $8 billion more on gasoline over the past month, according to De Haan, highlighting growing risks to the broader economy.
He added that surging diesel prices could also contribute to renewed inflationary pressures.The rally in U.S. fuel prices follows a sharp increase in crude benchmarks, with West Texas Intermediate crude topping $100 per barrel late last week and remaining in three-digit territory. The gains coincided with heightened geopolitical rhetoric, including a renewed threat by President Donald Trump toward Iran over the weekend.In remarks reported by Politico,
Trump said the United States could escalate its actions by targeting Iran’s key infrastructure, including electric generating plants, oil wells, and Kharg Island, intensifying fears of a broader regional conflict.Tensions escalated further after reports that Iran struck a Kuwaiti supertanker with a drone, setting it ablaze while it was anchored at Dubai Port. The vessel, fully laden at the time of the attack, underscored the vulnerability of energy supply routes in the region.
The latest developments have reinforced concerns about sustained volatility in global energy markets, with U.S. gasoline prices expected to remain sensitive to geopolitical risks and crude supply disruptions tied to the Middle East crisis.