Gasoline prices in the United States have remained around $4 per gallon, an unusually high price for late summer. The ongoing uncertainties in the Iran war are impacting these prices.
Tom Kloza, a leading oil analyst at Gulf Oil, noted, “We’re paying more than we’ve ever paid at this time of year. For August, this is quite high.”
Oil prices typically surge in the summer months due to increased driving demand. In contrast, prices usually decline in the autumn when demand decreases and seasonal blending restrictions are lifted.
According to AAA, as of Wednesday, the average gasoline price in the U.S. was about $4.04. This is approximately 90 cents more than the average price a year ago. The Iran war has directly influenced this spike, as the conflict affects shipping through the Strait of Hormuz, a major transit route for global oil supply.
In 2022, gasoline prices reached a noteworthy peak of over $5 per gallon during Russia’s conflict with Ukraine. By August, however, prices began to drop, and the average price for the month was $4.09 per gallon. Historic AAA data shows that by mid-August, the average dipped to $3.99 per gallon.
As upcoming midterm elections approach, fuel prices and affordability remain critical issues for voters. Kloza predicts, “We won’t see apocalyptic prices in the next 90 days, but they could be among the highest for this season.” He suggests prices might average between $3.50 and $3.75 per gallon, assuming no significant hurricanes impact the market.
The Hill’s Energy & Environment newsletter provides insights into policies affecting the energy sector. As editor Rachel Frazin reports, recent comments from former U.S. diplomat Richard Haass contradict President Trump’s claims of U.S. control over the Strait of Hormuz. Slight reductions in inflation have also been observed amidst resumed U.S.-Iran tensions.
“Former U.S. diplomat Richard Haass disagrees with President Trump’s assertion of U.S. ‘total control’ over the crucial Strait of Hormuz.”
Highlighted news on related energy topics includes financial gains from oil and gas assets by Supreme Court Justice Samuel Alito and predictions of record-high sea levels in California due to El Niño effects.
Furthermore, President Trump’s approval rating has dropped amid concerns about the Iran war and economic sufficiency as the November elections approach. Meanwhile, MyPillow founder Mike Lindell challenges results in Minnesota’s primary vote totals.
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