Despite President Donald Trump’s previous demand for gasoline retailers to "get their prices down immediately," the U.S. national average for regular gasoline surged back to $4.00 a gallon on Monday as military strikes between the U.S. and Iran escalated once again.
Ceasefire Collapses as Fuel Costs Rise
According to the Motor Club Federation AAA, the national average reached $4.0030 per gallon, up sharply from $3.1410 a year ago.
Diesel prices also climbed to $5.1080. Gas prices originally crossed $4 in late March before falling in mid-June when crude prices eased under an interim deal.
Even then, President Trump expressed frustration that pump costs were not declining as quickly as crude, prompting calls for retailers to lower prices. However, the recent collapse of that fragile agreement has sent energy markets soaring. Brent crude rose to $88.28 per barrel, while benchmark WTI U.S. crude was hovering around $81.58.
GasBuddy analyst Patrick De Haan previously warned that lowering fuel costs was complicated by refinery heat waves, state gas taxes, and expensive summer blends, noting that the president’s desired “magic ratio” between oil and gas prices was unlikely to return soon.
U.S. Strikes Iranian Capabilities
The price rally coincides with direct military conflict. U.S. Central Command announced a ninth consecutive night of strikes aimed at “degrading Iranian military capabilities” used to attack vessels in the Strait of Hormuz.
Following the latest operation, President Trump confirmed that the U.S. "hit them very hard again tonight," adding that "Iran has been very, very badly damaged" and "cannot have a nuclear weapon." The Pentagon reported U.S. military casualties from the conflict have risen to 17.
Midterm Election Fallout
Higher gas and oil prices threaten to push up costs for groceries and everyday consumer items. As drivers face regional prices well over $4 in several states, affordability promises to be a critical issue for voters in the upcoming U.S. midterm elections.
Price Action in Crude and Related Instruments
At the last check, WTI tracker United States Oil Fund LP (NYSE:USO) closed 3.91% higher on Friday, and it was down 0.02% in the premarket on Monday. Similarly, the Brent tracker United States Brent Oil Fund, LP (NYSE:BNO) closed 4.10% higher at $48.70, and it was 0.49% higher in the premarket on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
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