U.S. gasoline prices rise above $4 per gallon as tensions with Iran increase
The national average price for regular gasoline hit $4.003 per gallon on Monday, while diesel averaged $5.11, amid renewed U.S.-Iran hostilities that are pushing oil prices higher.
The average price for a gallon of regular gasoline in the United States reached $4.003 on Monday, according to data from the American Automobile Association, marking the first time in more than a month the national average has surpassed the $4 mark. Diesel fuel, which affects transportation costs for goods, averaged $5.11 per gallon on the same day.
The increase follows a recent escalation in hostilities between the United States and Iran, which analysts say is contributing to higher crude-oil prices. Brent crude rose 3.2% to $90.95 per barrel, and the U.S. benchmark crude climbed 2.8% to $84.04 per barrel, according to an energy tracker.
"Oil market dynamics are closely linked to geopolitical developments, and the current situation in the Strait of Hormuz is influencing price movements," a market analyst said.
Earlier in the year, gasoline prices peaked at $4.56 per gallon in May before moderating after diplomatic talks led to an interim agreement in June. However, renewed fighting has caused oil and fuel prices to climb again.