Gasoline prices topped $4 per gallon nationwide on Tuesday, with the national average price at the pump hitting $4.02, its highest level since August 2022, according to AAA data.
This rise comes as the US-Iran war enters its fifth week, and is the latest milestone reached by gas prices, which are now up about $1 on average compared to a month ago, with most of those gains due to the outbreak of the Middle East conflict.
The national average at the pump rose to $4.018 per gallon, its highest level in nearly four years, according to AAA data.
The underlying prices of international Brent crude oil (BZ=F) and US West Texas Intermediate crude oil (CL=F) have risen by approximately 50% each over the past month since the war began. Futures for both energy products were trading around $107.80 per barrel and $102 per barrel, respectively.
Read more: How oil price shocks impact your wallet, from gas to food
On March 25, the Trump administration eased federal restrictions on ethanol by issuing an emergency waiver for E15 gasoline, a move designed to increase supply of a less expensive fuel blend ahead of the driving season in warmer climates. The White House also issued a temporary 60-day waiver on the so-called “Jones Act” requirements that make domestic shipping more expensive.
However, none of these measures have really managed to push back gas prices across the country.
While consumers have had to shell out more money to fill up their vehicles over the past month, truckers have paid even more. The national average for a gallon of diesel reached $5.45 on Tuesday.
Strategists warn that oil prices (and therefore the prices of refined products such as gasoline, diesel and jet fuel) could rise further if the conflict drags on.
Analysts at Goldman Sachs raised their April Brent forecast from $85 to $115, “as a longer disruption supports the risk premium for longer,” given the uncertainty surrounding the Strait of Hormuz. Senior Saudi Arabian officials have modeled Brent at $180 if the war lasts until April, and Macquarie strategists have said Brent could surpass $200 if the conflict lasts until June.
Inés Ferré is a senior business reporter at Yahoo Finance. Follow her on X in @ines_ferre.
Jake Conley is a breaking news reporter covering US stocks for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
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