Gasoline prices in the United States have climbed to their highest level in four years, underscoring the growing impact of the Iran conflict on global energy markets, the New York Times reported.
According to the AAA motor club, the national average price for regular gasoline rose to $4.18 per gallon on Tuesday, its highest since April 2022, shortly after the Russia-Ukraine war began.
The latest spike, a 1.6% jump in a single day, marks the sharpest increase in over a month, as negotiations between the US and Iran remain deadlocked.
The impasse has intensified concerns over oil supply disruptions, particularly through the Strait of Hormuz, a critical route that typically carries nearly one-fifth of global crude shipments.
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Crude prices have rallied sharply alongside the escalation. Brent crude surged more than 4% to above $105 per barrel for July delivery before easing slightly, while West Texas Intermediate climbed about 5% to hover near $101 per barrel.
Brent has gained over $10 in the past week and remains more than 40% higher than pre-conflict levels following the initial US-Israeli strikes on Iran in February.
Despite elevated oil prices, US equity markets have shown relative resilience. The S&P 500 slipped 0.6% on Tuesday after touching near-record highs, as investors await the Federal Reserve's rate decision and a fresh batch of earnings from major technology firms investing heavily in artificial intelligence.
Fuel costs, however, are rising sharply. Gasoline prices are now about 40% higher since the onset of the war, while diesel has surged even faster, up 45% to $5.46 per gallon. Analysts note that retail fuel prices typically lag crude movements, suggesting further upside risk if oil continues to climb.
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Energy majors are already benefiting from the volatility. BP reported first-quarter profits of over $3 billion, beating expectations.
“The oil trading contribution was exceptional,” the company said in its filing. Chief executive Meg O'Neill added that she took charge “at a time when our industry is operating in an environment of conflict and complexity, playing a vital role in keeping energy flowing.”
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