Gas Prices Hit $4 Again as Oil Soars More Than 15% in a Week
The national average for regular gasoline crossed $4 a gallon again as U.S. crude and Brent oil prices surge amid renewed conflict with Iran and Russia-Ukraine attacks. Here's what's driving the spike.
The National Average Crosses $4 Again
Drivers are feeling it at the pump again. The national average price for regular gasoline hit $4 per gallon on Monday, marking the first time it has reached that threshold since June 17, as renewed conflict involving Iran and ongoing Russia-Ukraine attacks continue to rattle global energy markets.
The move higher didn't come out of nowhere. Just days earlier, gas prices had actually dipped as low as $3.79 a gallon on July 7 and 8 — but the relief was short-lived. Over the following two weeks, prices climbed steadily as tensions escalated between Washington and Tehran over the strategically vital Strait of Hormuz, through which a huge share of the world's oil supply passes daily.
What's Driving Oil Prices Higher
The numbers tell the story of just how fast this rally has moved. On Monday, U.S. crude oil rose nearly 1% to settle at $83.23 per barrel — its highest closing price since June 12 — while international Brent crude jumped 1.3% to $89.22 per barrel, its highest close since June 11.
Zoom out further and the trend looks even more dramatic: last week alone, both U.S. crude and Brent crude oil rose more than 15%, and over the past two weeks combined, prices are up more than 20%. Since the start of the year, U.S. crude and Brent oil prices have climbed roughly 45%.
Several factors have converged to fuel the surge:
- The Iran sanctions waiver reversal. Oil prices began climbing again after the U.S. revoked a sanctions waiver on Iranian oil on July 7, tightening global supply expectations almost overnight.
- A collapsed ceasefire. One day after the waiver was revoked, President Donald Trump announced that the ceasefire with Iran was over, removing a key source of market stability.
- A reinstated blockade. Trump later announced he was reinstating a blockade targeting vessels traveling to or from Iranian ports and coastal areas — a move directly affecting shipping through the Strait of Hormuz, one of the world's most critical oil chokepoints.
- Russia's diesel squeeze. Analysts have also pointed to Russia now looking to import diesel itself, which tightens global supply even further at a moment when demand is already elevated.
It's Not Just Gas — Jet Fuel Is Surging Too
The ripple effects are reaching well beyond the gas pump. Jet fuel prices have also spiked sharply: before the conflict with Iran intensified, jet fuel averaged around $2.50 per gallon. As of last Friday, that price had climbed nearly 43% higher to $3.57 per gallon, according to the Argus U.S. Jet Fuel Index — a jump that airlines are likely to feel in their fuel costs, and one that could eventually show up in ticket prices.
What This Means for Drivers and Travelers
With oil prices posting back-to-back weekly gains and geopolitical tensions showing no clear sign of easing, drivers should brace for the possibility that $4-a-gallon gas isn't a one-day blip. Key things to watch in the days ahead:
- Whether the Strait of Hormuz blockade escalates further or eases
- Any signs of renewed diplomacy between Washington and Tehran
- Continued weekly movement in U.S. crude and Brent oil settlement prices
- Airline responses to rising jet fuel costs, which could eventually affect airfare
The Bottom Line
After a brief dip to under $3.80 earlier this month, gas prices have snapped back to the $4 mark as the conflict over the Strait of Hormuz and broader geopolitical instability push crude oil to its highest levels in weeks. With oil up 45% since January and jet fuel not far behind, the pressure at the pump — and in the sky — looks far from over.
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