US Gas Prices Surge 50% Since Iran Conflict Began
Al Jazeera Staff
US gas prices have surged 50% since the US and Israel launched military operations against Iran, with the average reaching $4.48 per gallon. A blocked Strait of Hormuz has exacerbated global energy shortages, driving crude oil prices higher. Despite a brief ceasefire in April, prices continue to climb, fueling inflation and political pressure on President Trump.
The average price for regular gasoline in the US jumped 31 cents in the past week to $4.48 per gallon on Wednesday, according to AAA. That marks a 50% increase from before the US and Israel began their military campaign against Iran.
President Donald Trump paused the “Project Freedom” operation to reopen the Strait of Hormuz, but gasoline prices have continued to climb.
The US-Israel war with Iran has triggered a global energy crisis, sending crude oil — the key ingredient for gasoline — soaring. The Strait of Hormuz, a narrow chokepoint that typically handles a fifth of the world's crude, has been blocked, leaving tankers stranded and unable to deliver.
Many US drivers pinned hopes on a mid-April ceasefire announcement that suggested the conflict could cool. Prices fell daily for nearly two weeks, but then reversed course as fighting resumed.
“There is a fundamental shortage globally, or a fundamental struggle to meet that demand, which will push prices up,” Rob Smith, director of global fuel retailing at S&P Global Energy, told AP.
“No matter what any government says or what anyone in the market thinks, real upward pressure is being created every day while the Strait of Hormuz is restricted.”
The surging energy costs are fueling inflation and economic uncertainty, adding to Trump’s political woes. Recent polls show the US President’s approval rating hitting record lows as discontent over the Iran war mounts.
Since the war began, Trump and his allies have tried to explain the gasoline price hike as a temporary price for achieving the military campaign’s goals. But oil prices do not automatically fall when hostilities end. Despite an April 8 ceasefire, US gas prices continued to rise.
According to Smith, the longer oil flows are restricted through the Strait of Hormuz, the higher prices will go and the longer it will take to return to normal. “There will still be a risk premium in the industry related to transiting that area… The past months have shown it will be difficult to convince shippers and insurance companies that the risk level is the same as February (before the war).”
