U.S. gasoline prices return to $4 per gallon as tensions with Iran rise

The average price of regular gasoline in the United States climbed back to $4 per gallon on Monday, according to the American Automobile Association (AAA). The figure represents a national average; prices vary by state because of local supply conditions and tax differences. A year ago, the average was $3.14 per gallon.

The increase follows renewed hostilities between the United States and Iran, which have pushed Brent crude up 3.2% to $90.95 a barrel and U.S. benchmark crude higher 2.8% to $84.04 a barrel. The rise in oil prices has also contributed to higher costs for groceries and other consumer goods.

"Higher gas and oil prices can affect the cost of groceries and other goods," a political analyst noted, highlighting the potential impact on voters ahead of the midterm elections.

Gasoline prices first surpassed $4 per gallon at the end of March, fell below that level in mid-June as crude prices eased after an interim deal, and have now risen again amid the latest escalation.