The average US gas price has reached $4 per gallon, the highest level since 2022, due to rising global oil prices linked to the ongoing conflict in Iran. The American Automobile Association reported an average price of $4.018 per gallon, up from less than $3 at the end of February, as US military actions in Iran continue. Oil prices continue to fluctuate, with Brent crude, the international benchmark, climbing nearly 2% to $114.9 a barrel, reversing a slight decline from the previous day. According to the US Energy Information Administration, gas prices last exceeded $4 in August 2022 amid the COVID-19 pandemic and Russia’s invasion of Ukraine. According to AAA, California has the nation’s highest average gas price at $5.89 per gallon, followed by Hawaii at $5.45 and Washington at $5.34. The recent surge in prices stems from Iran’s blockade of the Strait of Hormuz, a critical oil chokepoint that transports roughly 20% of the world’s crude oil and liquefied natural gas. Trump expressed confidence that the US and Iran would soon reach a negotiated settlement while maintaining his threat to “blow up” Iran’s Kharg Island. Kharg Island handles around 90% of Iran’s oil exports. Bombing the island would allow the US to disrupt Iran’s energy trade and exert significant pressure on its economy. Meanwhile, Iran launched an attack on a Kuwaiti crude oil tanker anchored at Dubai port, damaging the vessel’s hull and igniting a fire that was later extinguished.
