AAA says gas prices jump 13 cents to three-month high amid Iran tensions

  • AAA reported a 13-cent weekly increase in the national average gasoline price.
  • 13 cents lifted the national average price to a three-month high, according to AAA.
  • EIA data showed gasoline demand and production both declined last week.

The American Automobile Association (AAA) said the national average gasoline price rose 13 cents over the past week to a three-month high as tensions between Washington and Tehran escalated. AAA said volatility around the Strait of Hormuz pushed crude oil back into the $100-per-barrel range for the first time since July. Energy Information Administration (EIA), the U.S. energy data agency, figures showed gasoline demand fell from 8.92 million barrels per day to 8.55 million, while gas production declined from 9.8 million barrels to 9.3 million. The Islamic Revolutionary Guard Corps (IRGC), Iran's elite military force, claimed it struck two U.S. vessels and eight oil tankers, but U.S. Central Command denied the claim. A New York Times report said senior Iranian officials viewed escalation as key leverage over the United States. At the Midterm Convention in Dallas, Texas, President Donald Trump warned that Democratic Party victories would damage Texas oil and gas production and raise taxes, while citing Texas's contribution of more than 42% of domestic crude output. Energy Secretary Chris Wright had previously described oil production in Texas's Permian Basin as having quadrupled. Trump also said he was considering renaming the Strait of Hormuz the Trump Strait and that the United States had recently struck nine Iranian oil vessels. Sen. Elizabeth Warren (D-Mass.) criticized Trump over rising U.S. energy costs. GasBuddy analyst Patrick De Haan said diesel prices in parts of California had reached $9.999 per gallon, while the diesel crack spread, a refinery margin measure, reached an all-time high of $102 per barrel in August. The Iran-backed Houthis took control of Mocha and may also have struck Saudi Arabia's East-West pipeline, which has capacity of 7 million barrels per day and was built in the 1980s.

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AAA says gas prices jump 13 cents to three-month high amid Iran tensions - CoinPost Terminal