You can have the Newsbeat regularly delivered to your mailbox so you never miss any news. This is a free service -- you can unsubscribe any time. Enter your email address and click the submit button; then confirm your subscription from your email.

Gas prices are back above $4 a gallon

by

The average price of gasoline in the United States has climbed back above $4 a gallon as renewed fighting involving the United States and Iran continues to disrupt global oil supplies.

According to AAA, the national average reached just over $4 per gallon Monday, marking a return to a price level that had briefly fallen below the threshold following a temporary easing of tensions in June.

Gas prices averaged $2.98 per gallon before the conflict disrupted oil shipments through the Strait of Hormuz, a critical route for global petroleum exports. Prices surged to a four-year high of $4.56 per gallon in early May before retreating after the United States and Iran signed a memorandum of understanding on June 14 aimed at halting hostilities and reopening the strategic waterway.

Prices have risen again after Iran resumed attacks on ships leaving the strait and the United States responded with military action and a blockade of Iranian ports. The national average has increased about 13 cents over the past week.

The jump at the pump mirrors rising crude oil prices. Brent crude briefly topped $90 a barrel Monday for the first time since early June, while U.S. benchmark West Texas Intermediate has climbed sharply this month.

The increase comes during the peak summer driving season, when gasoline demand traditionally reaches its highest levels.

Analysts say motorists are unlikely to see relief anytime soon. Independent oil analyst Tom Kloza expects wholesale gasoline prices to push retail prices another 10 to 25 cents higher over the next week.

In addition to the Middle East conflict, Kloza said Ukrainian drone attacks on Russian oil refineries have added pressure to global fuel markets by raising concerns about refined gasoline supplies.

Gas prices continue to vary widely across the country. According to AAA, Indiana has the nation’s lowest average price at $3.35 per gallon, while California remains the most expensive at $5.49. Washington and Hawaii also have statewide averages above $5 per gallon.

With summer travel remaining strong, analysts expect gasoline prices to remain elevated through the Labor Day holiday.

Source: CNN, AAA

>