The national average price for regular gasoline has hit $4 per gallon again, largely due to the renewed conflict with Iran and the impact of the Ukraine-Russia attacks on energy markets. This marks the first time the national average has been at $4 or higher since June 17.
Oil Price Increases
On Friday, U.S. crude oil settled at $82.49, while international Brent crude oil closed at $88.10. The prices of U.S. crude oil and international Brent crude oil have risen more than 15% over the last week and over 20% in the last two weeks.
The increase in oil prices began after the U.S. revoked a sanctions waiver on Iranian oil on July 7. Following this, President Donald Trump announced the end of the ceasefire with Iran and later stated plans to reinstate the Iranian blockade in the Strait of Hormuz, which is a critical waterway for global energy supplies.
Despite the uncertainty and daily U.S. strikes against Iran, as well as Iranian retaliation, the focus remains on the struggle for control over the Strait of Hormuz. According to JPMorgan Chase commodities analyst Natasha Kaneva, Tehran appears to be intent on establishing authority over navigation in the strait through mandatory transit protocols and transit fees.
The situation is further complicated by developments in the Russia-Ukraine war, with Russia banning exports of key refined products until the end of July. This ban, combined with the existing restrictions on shipments of gasoline and jet fuel, has led to less supply and more demand in the global market.
As a result, jet fuel prices are also rising, with the price increasing by nearly 43% since before the Iran war, reaching $3.57 per gallon as of Friday.
Original reporting: NBC Connecticut — read the source article.
