US gasoline price rises above $4 amid renewed Iran conflict

The national average price for a gallon of regular gasoline in the United States climbed back above $4 on Monday, reaching a level not seen since June as renewed hostilities between the U.S. and Iran disrupt a critical global oil shipping route. According to data from the American Automobile Association, the average price reached $4.0030, a sharp increase from $3.14 a gallon one year ago.

This marks the second time prices have crossed the $4 threshold since late February, when military strikes by the U.S. and Israel on Iranian targets began a conflict that has roiled global energy markets. Prices first exceeded $4 in late March after Iran began blocking commercial traffic through the Strait of Hormuz, a narrow waterway that carries roughly 20% of the world's oil supply. A temporary de-escalation came in mid-June when the two nations signed a memorandum of understanding, briefly pushing prices back below $4. That truce collapsed in early July, and fighting has since resumed, with recent attacks targeting shipping and prompting U.S. retaliation.

The resumption of conflict has triggered a significant surge in crude oil prices, which rose approximately 16% over the past week. On...