Key facts
- US gasoline prices are expected to surpass $4 a gallon within 7-10 days.
- Renewed U.S.-Iran hostilities have caused crude oil prices to surge.
- Traffic through the Strait of Hormuz has been significantly impacted.
- The national average gasoline price is currently $3.8590 per gallon.
- Ukrainian attacks have reduced Russia's refining capacity, contributing to higher fuel prices.
U.S. national average gasoline prices could surpass $4 per gallon within a week as renewed U.S.-Iran hostilities have caused crude oil prices to rally significantly. The conflict has impacted traffic through the Strait of Hormuz, a critical route for global oil supplies. The national average gasoline price stood at $3.8590 per gallon as of July 14, up from a week ago. GasBuddy analyst Patrick De Haan expects prices to reach $4 per gallon in the next 7-10 days, with diesel potentially hitting $5 per gallon by the end of the week. Additionally, Ukrainian attacks have disabled an estimated one-third of Russia's refining capacity, further tightening global fuel markets. Higher fuel costs could complicate the inflation outlook, as increased transportation and logistics expenses may pass through to consumers.