US gas prices reached an average of $3.70 a gallon today, according to AAA, a near 24% increase since the war in Iran began on February 28.
Oil prices have hovered around $100 a barrel this week as tensions escalate in the Middle East. Brent futures on Friday jumped 2.67%, closing at $103.14 per barrel, while US crude oil gained 3.11% to close at $98.71 per barrel.
The Strait of Hormuz, which accounts for 20% of the world’s crude flow, has effectively been closed since the start of the war.
It’s largely halted oil tanker movements from the region, disrupting the trade of oil from the Middle East’s oil-rich nations.
The war in Iran threatens President Donald Trump’s economic promises to lower gas prices, which in December had slipped below $3 a gallon for the first time since 2021.
The price of groceries, another issue Trump has promised to lower, could become more expensive due to higher shipping costs and surging fertilizer prices, according to a number of analysts.
Meanwhile, airline ticket prices have surged due to increased fuel costs.
Source: CNN
- Agencies
