Gasoline prices across the United States climbed on Tuesday to their highest point in four years, highlighting growing pressure on consumers as instability tied to Iran continues to rattle global energy markets, according to The New York Times.

The nationwide average for regular unleaded reached $4.18 per gallon, based on data from AAA. That figure represents the highest level since April 2022 and reflects a 1.6% increase in just one day — the sharpest single-day percentage gain in over a month.

Since the conflict began, prices at the pump have jumped by about 40%, adding to the burden on households already dealing with high everyday expenses.

The surge comes on the heels of a significant jump in crude oil prices, largely driven by stalled talks over reopening the Strait of Hormuz, a vital corridor for global oil shipments. Located between Iran and Oman, the strait typically handles roughly 20% of the world’s oil supply, meaning any disruption carries major implications for energy markets.

Brent crude, the global benchmark, briefly rose above $105 per barrel for July delivery before pulling back slightly.

Over the past week, oil prices have increased by more than $10 per barrel and remain more than 40% higher than they were before U.S.-Israeli strikes on Iran earlier this year. At the same time, West Texas Intermediate crude, the U.S. benchmark, climbed to approximately $101 per barrel.

Market analysts say continued uncertainty surrounding Iran’s nuclear negotiations, along with disruptions to shipping routes, is driving volatility in oil prices — a trend that is quickly being felt by consumers at gas stations.

Because gasoline prices often trail movements in crude oil, experts warn that further increases at the pump could still be on the way if tensions remain unresolved.

Diesel fuel has seen even steeper gains, rising to $5.46 per gallon — about a 45% increase since the start of the conflict. Higher diesel costs tend to ripple across the economy, pushing up transportation and shipping expenses that can ultimately be passed along to consumers.

Despite the rise in energy prices, stock markets have remained relatively steady, staying close to record highs.

Investors are now focused on upcoming earnings from major technology firms as well as the Federal Reserve’s next decision on interest rates for signals about where the economy may be headed.

For the moment, drivers are absorbing the impact of rising fuel costs, with little indication of relief as geopolitical tensions continue to weigh on energy markets.

{Matzav.com}