**Excerpt:** Gasoline prices in the U.S. have surpassed $4 per gallon, the highest level since August 2022, driven by ongoing conflict in Iran.
Key Points
– Average gas price in the U.S. hits $4.02 per gallon.
– Prices have increased by over $1 in just one month.
– Oil supply disruptions due to the Iran conflict are a major factor.
– Diesel prices also rose, reaching $5.454 per gallon.
– Rising fuel costs are causing concerns about the U.S. economy.
Gas Prices Surge Amid Iran Conflict
Gasoline prices in the United States have reached an average of $4.02 per gallon for the first time in over three years. This increase reflects the ongoing conflict in Iran, which has significantly impacted fuel costs for American motorists.
Recent Price Trends
The average price for regular gas rose from $3.99 on Monday, marking a notable increase of more than $1 from a month prior. The surge in oil prices is primarily attributed to disruptions in the crude oil supply chain following U.S. and Israeli military actions against Iran on February 28. The Strait of Hormuz, a critical passage for oil transport, has been affected, impacting approximately 20% of the world’s oil and natural gas supply.
Government Response
President Trump has issued mixed signals regarding the resolution of the situation in the Strait of Hormuz. In statements to CBS News, he indicated he is not ready to abandon efforts to reopen the waterway but also suggested that U.S. allies must take action to restore oil flow. Trump stated that gas prices would eventually drop once military operations conclude.
Historical Context
The last time gas prices exceeded $4 per gallon was in August 2022. During that period, prices briefly surpassed $5 per gallon following Russia’s invasion of Ukraine. According to petroleum expert Patrick De Haan, while the current increase is significant, it is not as extreme as previous surges.
Public Sentiment and Economic Impact
A CBS News poll indicated that rising gas prices are causing heightened concerns regarding the U.S. economy. Approximately 90% of respondents believe the Iran conflict will drive up oil and gas prices, with 58% anticipating long-term increases. Additionally, diesel prices have also climbed, impacting sectors such as agriculture and transportation. Analysts warn that higher transportation costs could eventually be passed on to consumers, affecting overall economic stability.
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