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Americans Face Higher Fuel Costs As Iran Conflict Escalate

Brent crude oil climbed above $90 a barrel for the first time since early June, while West Texas Intermediate also posted sharp gains

Photo by Bryan P.M / Unsplash

The average price of gasoline in the United States has climbed back above $4 a gallon as renewed fighting between the United States and Iran disrupted oil shipments through the Strait of Hormuz, according to CNN.

AAA data showed national average fuel prices have risen about 13 cents over the past week after briefly falling below $4 following a temporary ceasefire agreement in June.

The report said Brent crude oil climbed above $90 a barrel for the first time since early June, while West Texas Intermediate also posted sharp gains.

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Analysts attributed the increase to renewed conflict in the Middle East, U.S. actions against Iranian ports and Ukraine's drone attacks on Russian refineries, which have tightened global fuel supplies.

According to oil analyst Tom Kloza, gasoline prices are likely to rise another 10 to 25 cents in the coming week. Strong summer driving demand is also expected to keep upward pressure on fuel prices through Labor Day.

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U.S. West Texas Intermediate crude rose above $80 per barrel, while Brent crude climbed past $87 after extending gains from the previous session.

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Small America First

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