The price of gasoline in the United States once again surpassed $4 per gallon this Monday, driven by the escalating conflict between Washington and Tehran, which keeps global oil supply under pressure through the Strait of Hormuz.
According to data from the American Automobile Association (AAA), the national average reached $4.003 per gallon, a level that once again becomes a benchmark for consumers, businesses, and economic authorities due to its impact on inflation and transportation costs.
Gasoline Price Rises Due to Hormuz Pressure
The price increase is mainly due to new disruptions in maritime traffic in the Strait of Hormuz, a strategic corridor through which nearly 20% of the world’s oil supply normally circulates.
The resumption of hostilities between the United States and Iran rapidly drove up international crude oil prices. As a result, gas stations began to pass this increase on to the retail price of gasoline.
Likewise, the market remains attentive to any changes in the security of this route, considered one of the most sensitive points for international energy trade.
Refined Fuel Shortages Maintain Pressure
Alex Hodes, StoneX’s Head of Energy Market Strategy, noted that the global supply of refined fuels remains limited due to reduced refining capacity in several regions, especially in Asia and the Middle East. In this scenario, any additional disruption could keep gasoline prices high and fuel new inflationary pressures.
Low Inventories Worsen Fuel Market
Attacks against Russian energy infrastructure have reduced some of the available refining capacity, while U.S. inventories remain below the five-year average, according to official figures.
The combination of lower stocks and a tighter international supply increases the market’s sensitivity to any disruption in crude oil supply.
The Impact Also Reaches the Political Arena
The increase in gasoline prices once again becomes a challenge for President Donald Trump’s administration, especially as the campaign for the November legislative elections approaches.
More expensive fuel directly affects household spending and often influences the perception of inflation and economic performance. Analysts believe that political pressure could translate into new measures aimed at containing prices if the upward trend continues in the coming months.
Source: Reuters
Photo: Shutterstock