US gas prices hit an average of $4 a gallon again as the US and Iran launch attacks - AP News

What the report says

The Associated Press reports that U.S. gasoline prices climbed back to an average of about $4 per gallon on Monday, as renewed U.S. and Iranian attacks disrupted energy markets and raised concern about fuel flows through the Middle East. AAA put the national average for regular gasoline just above $4, up roughly 13 cents from a week earlier and well above the $3.14 average reported at the same point last year.

AP said crude oil, the main input for gasoline, has become more expensive amid renewed uncertainty over supplies. Brent crude traded between about $86 and $91 a barrel Monday, compared with around $72 at the start of July. Prices vary widely by state: AAA data cited by AP showed California near $5.50 a gallon, Hawaii around $5.42 and Washington state at about $5.01, while Indiana and Mississippi were closer to the mid-$3 range.

The report said an interim U.S.-Iran agreement had briefly eased energy prices, but that deal has collapsed, with attacks intensifying and traffic through the Strait of Hormuz again under pressure. AP cited S&P Global Energy analysts saying vessel crossings in the waterway fell 50% last week from the previous week. The White House said prices would fall as U.S. action reduces Iran’s ability to disrupt shipping.

The increase matters beyond gasoline. AP reported diesel averaged nearly $5.11 per gallon, up from $4.88 a week earlier, raising freight and business costs. Higher fuel prices could also become a political issue ahead of the November midterm elections.