The average price of regular gasoline across the United States has risen back above 4 U.S. dollars per gallon, according to the latest data released by the American Automobile Association (AAA) on Monday.
The current price marks a sharp increase from 3.14 U.S. dollars per gallon during the same period of last year, representing a year-on-year surge of over 27 percent.
Driven by factors including the ongoing military conflict between the United States and Iran, the national average price for regular gasoline breached the 4 U.S. dollars-per-gallon threshold at the end of March, reaching a nearly four-year high before continuing to climb.
After the two countries signed a memorandum of understanding in mid-June, prices fell back below 4 U.S. dollars per gallon and trended downward for a period. However, as the military confrontation between the two countries has escalated over the recent weeks, fuel costs have once again surged.
In addition, the escalation of the U.S.-Iran conflict has coincided with Russia's implementation of a diesel export ban, pushing the national average price of diesel back toward 5 U.S. dollars per gallon.
Industry insiders in the American freight sector have pointed out that rising diesel prices will directly increase transportation costs, which will be reflected in freight quotes and package surcharges, ultimately passing through to retail prices and further fueling inflation in the United States.
Analysts predict that the longer the Strait of Hormuz remains blocked, the greater the impact on the global economy, and oil prices may continue to climb.
As the November congressional midterm elections approach, elevated fuel costs are already placing political pressure on President Donald Trump and the Republican Party. A recent poll released by American media showed that approximately 67 percent of respondents expect the U.S. economy to deteriorate further over the coming year.
US oil prices climb back above 4 US dollars per gallon amid its continued conflict with Iran
US oil prices climb back above 4 US dollars per gallon amid its continued conflict with Iran
US oil prices climb back above 4 US dollars per gallon amid its continued conflict with Iran
