Overview
- The American Automobile Association reported on Monday, July 20, that the national average for regular gasoline reached $4.003 per gallon, reversing a decline from June.
- Renewed hostilities between the United States and Iran have again cut tanker traffic through the Strait of Hormuz and produced attacks on vessels, with the UKMTO reporting at least one burning ship near the Omani coast.
- Global crude spiked in response, with Brent briefly above $90 per barrel and U.S. benchmarks trading in the low-to-mid $80s, while U.S. fuel stockpiles stood near 210.5 million barrels, about 1.5 million barrels below the five-year seasonal average.
- The jump at the pump has real costs for households and businesses, pushed diesel above $5 a gallon in national averages, and has become a political liability for President Donald Trump and congressional Republicans heading into the midterms.
- Short-term policy options such as Strategic Petroleum Reserve releases and limited licensing have eased pressure before but insurers, mine and weapon hazards, and constrained refinery flows mean market confidence and normal tanker traffic could take weeks to months to restore.