Gas average returns to $4 as U.S.-Iran fighting lifts oil
AAA said regular gasoline averaged $4 a gallon Monday, up from $3.14 a year earlier, as renewed U.S.-Iran attacks pushed crude prices higher.
By Sofia Marchetti · World Affairs Correspondent
2 min read
The U.S. average price for regular gasoline returned to $4 a gallon Monday, according to AAA, putting a fresh cost squeeze on drivers as fighting between the United States and Iran resumed. The Associated Press reported that the increase followed new attacks by both countries and a renewed rise in crude oil prices.
AAA said the national average for a gallon of regular gas was $4 on Monday. The motor club federation said the average stood at $3.14 a gallon a year earlier.
The national figure masks wide differences at the pump, the AP reported. Drivers in some states had already been paying more than $4 a gallon, while prices remained lower elsewhere.
Those differences reflect local conditions, including access to fuel supplies and state tax rates, according to the AP. The AP also reported that consumers outside the United States are facing elevated gasoline prices tied to the war.
Prices had eased after an interim deal
Gasoline first crossed the $4 national average in late March, the AP reported. Prices slipped under that level in mid-June and kept easing as crude oil declined after the United States and Iran reached an interim agreement, according to the AP.
Even during that period of lower oil prices, President Donald Trump said gasoline was not getting cheaper as quickly as he wanted, the AP reported. The latest jump reverses part of the relief consumers had seen after the mid-June decline.
The AP reported that affordability is expected to matter to voters in the U.S. midterm elections. Higher energy costs can also feed into prices for groceries and other goods, according to the AP.
Crude prices rise again
Oil prices have moved higher in recent days as the United States and Iran have come closer to a return to full-scale war, the AP reported. Gasoline prices often respond to changes in crude markets, though the timing and size of those moves can vary by region.
Brent crude, the global benchmark, rose 3.2% Monday to $90.95 a barrel, according to the AP. U.S. benchmark crude increased 2.8% to $84.04 a barrel.
The AP reported that the renewed pressure on oil markets followed the breakdown of the earlier calm between Washington and Tehran. For U.S. households, the result is a national pump price back at a level that had briefly eased in June.
This story draws on original reporting from Fortune.