The average price of a gallon of gasoline in the United States exceeded $4.32 on Monday, up about 45% since the war on Iran began on February 28, according to data from the American Automobile Association, while diesel reached a record $7.39 per gallon.
Gasoline and diesel prices rise
The average price of a gallon of gasoline reached $4.32, compared with $2.98 before the war began on February 28. Diesel prices also rose to $7.39 per gallon, compared with $5.96 on September 7 this month.
Diesel is used to power trucks, trains and ships and across supply chains, as well as in the agricultural sector, potentially raising transportation costs and putting pressure on commodity prices.
Oil rises amid supply disruptions
Brent crude rose more than 2% in the latest trading to $108.18 a barrel, while West Texas Intermediate climbed to $103.85, amid supply concerns after Saudi Arabia's East-West pipeline was disrupted and new attacks were carried out against the kingdom.
The disruption to the Saudi pipeline, which allows oil to be transported to the Red Sea while bypassing the Strait of Hormuz, heightened concerns about the kingdom's exports.
New Houthi attacks on Saudi Arabia could affect oil-market investors' expectations regarding the conflict's intensity and duration
Risk of losing 4% of global supplies
Saudi buyers and traders said oil available for export could begin to run out within days if the East-West pipeline does not resume operations, potentially resulting in the loss of up to 4% of global oil supplies.
Preliminary data from Kpler showed that the movement of commodity-carrying vessels through the Strait of Hormuz fell to 4 vessels on Monday, from 10 the previous day. Hussein warned that if the East-West pipeline remains disrupted for several weeks, Brent could rise to $130 a barrel if demand levels do not change or oil flows through the strait do not increase.
