US gasoline prices exceed four dollars per gallon amid Middle East conflict

Gasoline prices in the United States have surpassed four dollars per gallon for the first time since August 2022, according to data from the American Automobile Association (AAA). The average retail price reached 4.018 dollars on Monday, marking an increase of over one dollar since the start of hostilities between the US, Israel, and Iran. The conflict has severely disrupted oil and gas production in the region, effectively closing the Strait of Hormuz and driving WTI crude prices above 100 dollars per barrel. Diesel prices have also surged, exceeding 5.45 dollars per gallon, which poses a significant threat to transport and supply chains. Discrepancies exist between reports, with GasBuddy noting an average of 3.46 dollars per gallon last week, while AAA reports higher current figures. Economists highlight that these rising costs complicate the Federal Reserve's monetary policy and present a political challenge for the Donald Trump administration ahead of upcoming midterm elections. Consumers, such as those in Massachusetts, have expressed concern over the rising costs, altering travel plans accordingly. Financial analysts warn that high visibility of fuel prices creates economic pessimism among the American public.