Gasoline prices at gas stations in the US have again exceeded the threshold of $4 per gallon (one gallon equals 3.8 liters - ed.), according to data from the American Automobile Association (AAA), cited by Reuters. The increase comes as the exchange of strikes between the United States and Iran has again disrupted global oil supplies through the Strait of Hormuz, BTA reported.
Average national retail gasoline prices in the United States have risen by more than 30 percent since the start of the war in the Middle East, according to AAA.
The psychological threshold of $4 per gallon, which is painful for many households to cross, was last exceeded in late March, when Iran stopped traffic through the Strait of Hormuz. Prices fell in June after the signing of a memorandum of understanding to end the war between the countries, Reuters recalls.
About 20 percent of global oil supplies passed through the strait before the war began in late February. High prices at gas stations have become a difficult problem to solve for US President Donald Trump and his administration. The election campaign is about to begin, with the Republican Party trying to hold on to its modest majority in Congress in the November midterm elections, Reuters recalls.
Crude oil also rose, by about 16 percent, after the collapse of the ceasefire between the United States and Iran. Retail fuel prices and crude oil usually move in the same direction, as oil is a key ingredient in fuel production.
Energy prices have also been affected by the loss of Russian refining capacity due to the increasing Ukrainian attacks.
The high prices are also the result of reduced fuel inventories in the United States. The country's reserve has reached 210.5 million barrels, which is about 1.5 million barrels below the five-year average, according to official data.