The average price of regular gasoline across the United States rose just above $4 a gallon on Monday, returning to that level for the first time since June 17 as renewed hostilities involving Iran unsettled global energy supplies. The national figure was about 13 cents higher than a week earlier and well above the roughly $3.14 average recorded a year before. [Source 14786; Source 14787]
The increase followed a brief period of relief for motorists. The national average had fallen as low as $3.79 on July 7 and 8 before climbing over the subsequent two weeks. Oil prices also advanced sharply: US crude closed Monday at $83.23 a barrel, while Brent crude settled at $89.22. Both benchmarks had gained more than 15% during the preceding week and more than 20% over two weeks. [Source 14787]
Energy markets have focused on the Strait of Hormuz, a strategically important waterway that normally carries about one-fifth of global oil or energy supplies. Traffic through the strait has slowed amid exchanges of attacks between the United States and Iran and uncertainty over navigation. S&P Global Energy analysts said vessel crossings fell 50% in the previous week compared with the week before, while separate shipping data cited by NBC News showed crossings dropping to a three-week low. [Source 14786; Source 14787]
Gasoline prices vary widely across the country, so the national average does not reflect what every driver pays. California’s average was nearly $5.50 a gallon on Monday, followed by almost $5.42 in Hawaii and $5.01 in Washington state. Indiana and Mississippi were substantially lower, at about $3.35 and $3.57 respectively. Differences in regional supply, taxes and other local factors contribute to the disparity. [Source 14786]
Crude oil accounts for the largest component of gasoline costs, although changes in oil markets generally take time to reach filling stations because refiners purchase and receive crude in advance. Brent traded between roughly $86 and $91 during Monday’s session, compared with about $72 at the beginning of July. It had approached $120 in March, while the US gasoline average exceeded $4.50 in May before retreating. [Source 14786]
Other fuels were also becoming more expensive. The national diesel average reached nearly $5.11 a gallon, up from $4.88 one week earlier. Higher diesel costs can spread beyond motorists because the fuel powers freight and long-haul trucking, raising transportation expenses for businesses. Jet fuel was nearly $3.57 a gallon on Friday, about 43% above its prewar average of $2.50, according to figures cited by NBC News. [Source 14786; Source 14787]
The White House said it expected oil and gasoline prices to return to pre-conflict levels as US military operations reduced Iran’s ability to disrupt commercial shipping. However, uncertainty over the fighting and future control of the strait continued to weigh on traffic. S&P Global Energy previously said Persian Gulf oil production might not recover fully until at least the first quarter of 2027. [Source 14786]
