The average price US drivers pay for a gallon of gas has hit $4, as fighting between the United States and Iran intensified, further disrupting oil flows through the Strait of Hormuz.
Impact on Gas Prices
According to the American Automobile Association (AAA), the average price is now just above $4 a gallon. Gas first crossed the $4 mark, a psychologically important threshold, on March 31, a month into the conflict. Prices jumped from $2.98 a gallon on average before the war, as the conflict cut off most oil flowing through the critical Strait of Hormuz.
In early May, gasoline prices rose to a four-year high of $4.56 before falling on hopes that negotiations between Iran and the United States would reopen the waterway and release oil tankers that had been trapped in the Persian Gulf. However, prices at the pump began to climb again after Iran resumed attacks on ships trying to exit the strait and after the US retaliated and put a blockade on Iranian ports.
High pump prices are a concern for President Donald Trump and the Republican Party ahead of midterm elections in November. About half of America’s states still have an average price below $4 a gallon, however. Indiana has the lowest average price at $3.35 a gallon, while California is the most expensive at $5.49.
Outlook
Gas prices are not expected to decline anytime soon, according to Tom Kloza, an independent oil analyst and advisor to Gulf Oil. The recent run-up in gasoline futures indicates prices will rise another 10 to 25 cents over the next week.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
