For the first time since 2022, according to the American Automobile Association (AAA), the average price of a gallon of gasoline (3.78 liters) in the US exceeded $4 on Tuesday. As the American network CBS comments, this development is one of the most tangible signs of how the war in Iran is driving up fuel costs for American motorists. The average price was $4.018 per gallon, according to AAA, marking an increase from Monday’s $3.990.
Gas prices have skyrocketed since the US and Israel attacked Iran on February 28, rising more than one dollar per gallon in the past month, according to Association data. The last time gasoline exceeded $4 per gallon was in August 2022. Prices briefly surpassed $5 per gallon in June of that same year, following Russia’s invasion of Ukraine which caused a sharp spike in crude oil prices.
“It’s not the $5 shock, but drivers will really start to see the price digits in dollars at the pump rising relatively quickly,” said Patrick De Haan, oil expert at GasBuddy, to CBS.
Oil prices: How they’re shaping up amid Middle East war
Oil prices also posted new gains, reaching $5.454 per gallon on Tuesday, compared to Monday’s $5.416. This fuel is widely used in agriculture and construction, as well as in trucks, trains and ships that transport American goods.
As transportation costs increase due to higher energy prices, companies could eventually pass some of the burden onto consumers, Diane Swonk, chief economist at KPMG, recently told CBS News.
The Trump administration has taken multiple measures in an attempt to contain energy prices, such as releasing oil from its strategic reserves and relaxing government regulations that can lead to increased costs for petroleum products.
However, analysts told CBS News that these measures alone are not enough to fill the energy supply gap or provide relief to Americans from the prices.
