The average price of a gallon of US regular gasoline rose 2 cents on Tuesday, reaching $4.14, according to the latest data from AAA. Prices have now increased 39% since the start of the Iran conflict, with last week marking the first time gas crossed $4 per gallon since 2022.
Trump Issues Ceasefire Deadline, Strait of Hormuz Remains Key Factor
President Donald Trump has threatened attacks on Iran’s power plants and bridges unless Tehran reopens the Strait of Hormuz by 8 p.m. ET Tuesday. The strait has been closed to about 20% of global oil supply since the conflict began, creating volatility in global commodity markets.
Oil futures showed only slight gains in early trading, as investors awaited Trump’s next moves, noting that prior deadlines have been reversed, triggering sharp drops in prices.
Global Supply Disruptions Affect Domestic Prices
Although relatively little Middle Eastern oil reaches the US, the strait’s closure has impacted global oil and gas pricing, which in turn drives pump prices domestically. Analysts note that even if the strait reopens and oil futures fall, gas prices may take weeks to reflect any decline, keeping American drivers exposed to high costs.
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