Overview
- U.S. average regular gasoline has risen back toward $4 per gallon after fighting between U.S. forces and Iran resumed this week, reversing earlier summer declines.
- Diesel has also jumped, with national averages returning to about $5 per gallon as crude benchmarks and retail pump prices both moved higher.
- Traders and analysts point to fears about shipments through the Strait of Hormuz and damaged ports, plus mine threats and insurance and crew hurdles, as the main forces tightening supply.
- The price rebound heightens political risk for President Donald Trump and Republicans because research shows small increases in gas prices can lower presidential approval and sway voters ahead of midterms.
- Households already feeling strain are likely to see weekly budget pressure rise and markets could remain volatile until tanker transits and port operations stabilize, which could take weeks or longer.