Gas prices start climbing again as U.S.-Iran tensions flare
Summary
Gasoline prices in the United States have started rising again after a recent drop, due to renewed military tensions between the U.S. and Iran. Concerns about a possible conflict disrupting oil trade through the Strait of Hormuz are affecting fuel costs.Key Facts
- Gas prices rose to $3.88 per gallon, up from $3.84 a week earlier.
- Prices had fallen to $3.80 on July 5, after a temporary ceasefire between the U.S. and Iran was signed.
- Regular gas averaged $2.98 per gallon before the Iran war started in late February.
- President Trump said the ceasefire with Iran is "over" but negotiations will continue.
- The Strait of Hormuz handles about 20% of global energy shipments and recent violence has reduced ship traffic there.
- Oil price makes up 51% of the retail gas price; refining and other costs also affect gas prices.
- Additional factors pushing prices up include attacks on Russian oil refineries and seasonal demand increase for fuel during summer.
- Russia has banned diesel exports, tightening global fuel supply.
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