The U.S. national average retail price of petrol rose above $4 a gallon for the first time in over three years on Monday (30 March), according to GasBuddy data, as the U.S.–Israeli war with Iran continued to roil global energy markets.
The $4-a-gallon milestone was last reached in August 2022 following Russia’s invasion of Ukraine and is widely seen by analysts as a psychological threshold for consumers.
Prices for many goods are rising, including crude oil used to produce petrol, after Iran effectively closed the Strait of Hormuz, a key global trade chokepoint.
Surging fuel costs are beginning to strain U.S. household finances, already under pressure from broader inflation. They have also become a political challenge for U.S. President Donald Trump and his Republican Party ahead of the November midterm elections.
Trump had pledged to reduce energy prices and boost U.S. oil and gas production. However, much of his second term so far has been marked by volatile markets, geopolitical tensions and shifting policies on issues such as tariffs.
U.S. national average retail petrol prices have risen by around $1.06 per gallon, or 36%, since the U.S. and Israel launched attacks on Iran at the end of February.
Raymond James analyst, Pavel Molchanov, said: “A sudden outbreak of war leads to a spike in U.S. gasoline to $4.00 per gallon. That describes the current Iran conflict - and also Russia’s invasion of Ukraine in 2022.
“Then, as now, oil prices surged globally and emergency stockpiles were tapped. However, we expect this crisis to be shorter: whereas petrol remained above $4.00 for 23 weeks in 2022, we anticipate prices beginning to ease in the coming weeks.”
Pump prices could rise further if crude oil continues to climb. U.S. oil futures have surged since the conflict began, settling at $102.88 a barrel on Monday, up $3.24. They rose by more than $3 in Asian trading after Kuwait reported that an oil tanker had been attacked at a Dubai port.
The Trump administration has taken steps to mitigate rising energy costs during the conflict, including issuing a 60-day waiver of the Jones Act shipping law.
The waiver temporarily allows foreign-flagged vessels to transport fuel, fertiliser and other goods between U.S. ports, although industry sources expect it to have only a limited effect on prices.
High petrol prices are already squeezing U.S. households. A Reuters/Ipsos poll found that 55% of respondents said their finances had been affected at least “somewhat” by rising fuel costs. Among those impacted, 21% said their finances had been affected “a great deal.”
President Donald Trump said the U.S. and Iran had agreed to continue talks despite an escalation of hostilities this week but he declared that the cea...
Israel's decision to recognise the so-called Armenian genocide has triggered diplomatic tensions with Azerbaijan, one of its closest strategic partner...
The remains of 10 victims of the 1995 Srebrenica genocide were carried to the Potočari Memorial Cemetery in eastern Bosnia and Herzegovina on Friday ...
The Kremlin warned on Monday that Armenia could lose the “very attractive” price it pays for Russian gas if it moved away from integration with Russia and deepened ties with the European Union.
Demand for electric vehicles has surged across Europe as elevated fuel prices linked to the Iran conflict push consumers toward new and second-hand EVs, according to data shared with Reuters. It is providing a boost to an auto industry that has struggled with slower-than-expected adoption.
The U.S. war in Iran has cost $25 billion so far, a senior Pentagon official said on Wednesday (29 April), offering the first official estimate of the military’s price tag for the conflict. The sum is equivalent to NASA’s entire budget for this year.
The Trump administration extended a sanctions exemption on some Russian oil as prices continue to skyrocket in the wake of the U.S.- Israeli war against Iran on Friday (17 April).
It has been a punishing week for large parts of China, and forecasters warn the worst may not be over. After Typhoon Maysak left a trail of destruction and at least 23 people dead, Super Typhoon Bavi is now threatening the country's eastern coast.
At least 12 people have been killed in forest fires in Almeria in southern Spain, Andalucía’s emergency agency has said, as firefighters continue efforts to put out the blaze.
U.S. President Donald Trump said Washington has agreed to resume talks with Iran after Tehran requested further negotiations, but declared that last month's ceasefire between the two countries was "over".
The U.S. military said on Wednesday it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, triggering Iranian attacks on Kuwait and Bahrain in the latest escalation to derail efforts to end the war.
The Welsh rock singer Bonnie Tyler, best known for the global hit "Total Eclipse of the Heart," has died aged 75 in Portugal.
China has approved fast-fashion retailer Shein's long-awaited initial public offering (IPO) in Hong Kong, clearing the way for the company to pursue a stock market listing after previous attempts in the U.S. and London failed.
European carmakers have urged the European Union to make sure new “Made in EU” rules do not put existing investments in Türkiye and Morocco at risk.
Microsoft is expected to announce a new round of job cuts as early as next week as the technology giant looks to reduce costs, according to reports.
A Swedish court has ordered Alphabet-owned Google to pay about $1.5 billion in antitrust damages to price comparison platform PriceRunner, in one of Europe's largest competition-related awards against a major technology company.
U.S. President Donald Trump earned more than $1bn from cryptocurrency-related business ventures last year, according to his mandatory 2025 financial disclosure.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment