AAA said the national regular gasoline average topped $4, while Brent crude hit a seven-week high as U.S.-Iran tensions, Red Sea threats, Black Sea attacks and lower gasoline inventories raised supply concerns.
The U.S. average price for a gallon of regular gasoline rose back above $4 on Monday, according to AAA, reaching a two-month high as escalating geopolitical risks and tighter fuel supplies pushed oil and gasoline prices higher. Brent crude later climbed about 4% to $94.5 a barrel on Wednesday, a seven-week high and a fourth straight daily gain, after the U.S. carried out an 11th consecutive day of strikes against Iran, President Donald Trump ruled out near-term talks with Iran and warned of broader military action, and threats to shipping in the Red Sea and attacks on the Caspian Pipeline Consortium terminal added to concerns over global crude flows. Industry data showed U.S. gasoline inventories fell by 1.379 million barrels in the week ending July 17. Higher fuel prices are politically sensitive ahead of the U.S. midterm elections and can add to inflation by increasing transportation and input costs.