Gas prices at the pumps in America have surpassed an average of $4 U.S. a gallon for the first time since 2022 as the Iran war causes fuel prices to soar around the world.
According to automotive club AAA, the national average for a gallon of regular gasoline is now $4.02 U.S., a dollar more than before the Iran war began on Feb. 28.
The last time U.S. motorists paid this much at the pumps was four years ago, following Russia’s invasion of Ukraine.
The AAA price is a national average, meaning drivers in some states are paying a lot more than $4 U.S. a gallon. In some states, gas prices are reported to be above $5 U.S. a gallon.
Since the U.S. and Israel launched a war against Iran on Feb. 28, the cost of crude oil, the main ingredient in gasoline, has risen more than 50%.
The Iran war has caused supply chain disruptions and cuts from major oil producers across the Middle East.
Higher gas prices are impacting American consumers and businesses as households continue to face wider cost of living strains.
Higher gas prices are expected to cause an overall increase in inflation that could force central banks to again raise interest rates.
Consumer prices and the cost of living are becoming flashpoints in U.S. midterm elections, with Democrats hammering President Donald Trump and the Republicans as they try to hold onto majorities in Congress.
A recent poll by the Associated Press (AP) found that 45% of U.S. adults are “extremely” or “very” concerned about being able to afford gas in the next few months.
To help alleviate the current situation, the International Energy Agency (IEA) has pledged to release 400 million barrels of crude oil from emergency stockpiles of its member nations.
The Trump administration has also eased sanctions to free up some oil deliveries from Venezuela and Russia.
However, it’s not clear what impact, if any, the reserve releases are having on crude oil prices. Brent crude, the international standard, is currently trading at $115.45 U.S. per barrel.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is at $103.68 U.S. a barrel. Both oil prices were trading below $70 U.S. a barrel before the Iran war began.
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