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U.S. Gasoline Average Climbs Back Above $4 as Strait of Hormuz Traffic Plummets

Renewed U.S.–Iran fighting has sharply cut tanker transits and lifted crude and pump prices, raising inflation and political risks at home.

Overview

  • The national average for regular gasoline rose to $4.0030 per gallon on Monday, according to AAA, reversing the mid‑June drop below $4.
  • Renewed hostilities between the United States and Iran have closed much of the Strait of Hormuz to commercial traffic, with vessel transits falling to only a few ships on some days, data from Kpler and LSEG show.
  • Global oil benchmarks jumped in response as Brent moved above $90 per barrel and U.S. crude traded in the mid‑$80s, while diesel climbed to about $5.10–$5.11 per gallon.
  • U.S. gasoline inventories are tight at about 210.5 million barrels, roughly 1.5 million barrels below the five‑year average, and reduced refining output worldwide has left markets sensitive to further shocks.
  • Higher pump prices could boost consumer inflation, raise costs for freight and goods, and increase political pressure on President Donald Trump and congressional Republicans ahead of the November midterm elections.