After a brief respite, the price of gasoline is starting to rise again.
On Monday, the average price at the pump in the United States soared to $4 a gallon, according to the AAA auto club, as the war with Iran resumed, halting most shipments and pinching already depleted global refineries.
The price is up 13 cents from a week ago, when it averaged $3.87 across the country.
This is a return to the high prices observed this spring. In March, shortly after the United States and Israel attacked Iran, U.S. gas prices averaged $4 per gallon for the first time since 2022, following Russia’s invasion of Ukraine. Prices rose above $4.50 in May before gradually falling below $4 after the United States and Iran agreed to a temporary ceasefire.
The preliminary agreement did not hold and the conflict further escalated, with the United States this week reestablishing a naval blockade on Iranian ports in the Strait of Hormuz, a vital waterway for the transportation of oil and gas. The blockade and strikes in the region have virtually halted shipping, pushing up energy prices.
Brent crude, the international benchmark for oil, exceeded $90 a barrel on Monday, its highest level in more than a month. West Texas Intermediate, the American benchmark, was worth $82 per barrel..
On Thursday, the average price of diesel exceeded $5 a gallon, an increase of 33 percent since the start of the war. On Monday, diesel cost $5.11 per gallon, up about 23 cents from the previous week.
The national average price does not reflect the wide range of prices across the country. Prices in many Southern states, for example, are closer to $3.60 per gallon, while they are around $5.50 per gallon in California.
The price increases represent a dilemma for President Trump as the November midterm elections approach, which will likely be a critical referendum on his performance. Economic anxiety is a top concern for many voters.
The White House welcomed economic data released last week showing that consumer prices fell in June, although they were still up 3.5 percent from the same period last year. Mr. Trump told reporters in the Oval Office: “Prices are coming down dramatically and we’re doing a great job. And remember that for the midterm elections.”
But July seems to give the opposite result. Several factors contribute to price pressure, beyond the increase in oil prices following the war in the Middle East. In the United States, many refineries that process oil into different types of fuel operate at high capacity with low inventories. And demand for gasoline increases with summer travel.
