Key facts
- U.S. gasoline prices rose for the first time since May, reaching a national average of $3.8590 per gallon.
- The increase is linked to the collapse of the U.S.-Iran ceasefire and renewed military exchanges.
- Shipping traffic through the Strait of Hormuz has fallen by approximately 50%.
- Crude oil prices have increased by about 15% over the past week.
- Ukrainian attacks have disabled an estimated one-third of Russia's refining capacity.
U.S. gasoline prices have seen their first increase since May, with the national average price per gallon rising to $3.8590. This reversal is directly attributed to the collapse of a tentative ceasefire between the U.S. and Iran, which has triggered renewed military exchanges and significantly disrupted shipping through the critical Strait of Hormuz. Nearly 80% of U.S. states have experienced retail price hikes, mirroring a roughly 15% rally in crude oil prices over the past week.
The breakdown of the U.S.-Iran ceasefire has reintroduced substantial risk to global oil supplies. U.S. forces have targeted Iranian radar sites, air defense systems, and Revolutionary Guard facilities, while President Donald Trump has reimposed a naval blockade on Iranian shipping and demanded transit fees for vessels in the Strait of Hormuz. Iran has retaliated with attacks on U.S.-linked military installations in several countries, leading to a reported 50% reduction in commercial shipping traffic through the vital energy chokepoint.
Global energy supplies are under pressure from multiple fronts. In addition to the Middle East conflict, Ukraine has intensified its campaign against Russia's energy infrastructure, targeting refineries, fuel depots, and oil terminals. Russia recently announced a ban on diesel exports to stabilize its domestic market following these Ukrainian drone attacks, which analysts estimate have disabled about one-third of the country's refining capacity.