The average price of a gallon of gasoline in the United States rose on Friday to $4.46, approaching its highest level since the 2022 fuel crisis, amid the fallout from the US-Israeli war against Iran and disruptions to global energy supplies.
The average price of a gallon of gasoline increased by about 4.5% over the week, from around $4.27 to $4.46, according to data from the American Automobile Association.
Supply disruptions push up fuel prices
Association data showed that the average price of a gallon, whose capacity is 3.7 liters, rose from $2.98 before the start of the war against Iran to $4.46, an increase of about 49%.
The surge in fuel prices came as global energy prices rose because of supply disruptions and the continued closure of the Strait of Hormuz, through which about 20% of the world's oil, refined products and liquefied natural gas supplies passed before the war.
Gasoline prices approached their highest level since the 2022 fuel crisis, when they reached $5.01 a gallon as a result of rising oil prices and disruptions to energy supplies following the outbreak of the Russia-Ukraine war.
US diesel prices reached a record $6.44 a gallon on Friday, up 71% from their level before the war against Iran, when they stood at $3.76 a gallon.
Diesel is a key fuel for trucks, trains and ships across supply chains, and is also used in agriculture, driving up transport and agricultural and industrial production costs.
Inflation drives US interest rates higher
Higher gasoline and diesel costs in the United States contributed to rising inflation, prompting the Federal Reserve, led by Kevin Warsh, to raise US interest rates by a quarter of a percentage point this week to between 3.75% and 4%, in an effort to control prices.
Tighter monetary policy raises mortgage and personal loan costs for millions of Americans, adding to the burden caused by higher gasoline and diesel prices and rising prices in general.
Oil retreats after reaching a four-month high
Crude oil prices remained elevated despite a relative decline during Friday trading, with Brent futures falling $1.65 to $103.17 a barrel and US West Texas Intermediate futures dropping 61 cents to $101.30 a barrel.
Oil prices had risen this week to their highest level in about four months after sources said crude oil shipments at Saudi Arabia's Yanbu port on the Red Sea had been suspended following damage to the East-West pipeline caused by an attack by the Houthis last week.
Prices fell after reports said Saudi Arabia was seeking to restore about half of the pipeline's capacity within days.
