U.S. Gas Prices Rise Toward $5 as Hormuz Remains Closed

Gasoline prices have risen to an average of $4.48 per gallon as oil prices remained above $100 per barrel.

Retail gasoline prices have surged roughly 50% since the conflict involving Iran began, driven by rising oil prices.

The national average has climbed about $0.31 over the past week and stands $1.32 higher than a year ago, according to AAA data, Ines Ferré reported for Yahoo Finance.

“This just doesn’t really show any signs of stopping anytime soon,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

Retail gasoline prices have surged roughly 50% since the conflict involving Iran began, driven by rising oil prices. “Every day that we continue to see the Strait of Hormuz remain closed, we’re getting close to potentially seeing new records across the board for gasoline,” De Haan added.

On Tuesday, Brent crude oil slipped toward $110 per barrel, while West Texas Intermediate hovered near $101 as the U.S. said a ceasefire with Iran remained in place and continued efforts to escort vessels stranded near the Strait of Hormuz.

“If the Strait remains closed another month, we will be at $5 per gallon,” said oil analyst Andy Lipow. California, which faces higher taxes and refinery constraints, is already averaging $6.11 per gallon.