Gas Prices Reach New Highs

U.S. gasoline prices continue to rise, reaching $4.06 per gallon. This marks the highest average price since August 2022, after surpassing the $4 threshold on Tuesday.

Impact of the Iran Conflict

The increase in gas prices is directly linked to the ongoing conflict in Iran. According to AAA, the average cost of a gallon of gas has increased by 36% since the start of the war.

Disrupted Oil Supply

The conflict is disrupting global oil supplies, significantly impacting prices at the pump. Brent crude currently accounts for 51% of the cost of a gallon of gas, as reported by the U.S. Energy Information Administration.

The Strait of Hormuz, a critical waterway for global oil transport – handling approximately one-fifth of the world’s oil supply – remains largely closed. Analysis from Lloyd's List Intelligence indicates that a majority of ships transiting the strait have connections to Iran.

Trump's Upcoming Address

President Trump is scheduled to deliver a prime-time address on Wednesday night. White House Press Secretary Karoline Leavitt announced via X (formerly Twitter) that the address will provide “an important update on Iran.”

Promises of Relief

President Trump stated to CBS News on Tuesday that gas prices would decrease “when we leave, when it’s over.” Leavitt echoed this sentiment in an email to CBS News, stating that prices would “plummet back to the multi-year lows” once “Operation Epic Fury” is complete.

Reducing energy prices was a key pledge made by Mr. Trump during his campaign.

Expert Predictions

Despite hopes for a swift resolution, petroleum expert Patrick De Haan of GasBuddy anticipates further price increases in the short term. He predicts that several states, including Michigan, Indiana, and Ohio, may see rising gas prices today.

National Average Forecast

De Haan forecasts the national average gas price will reach $4.10 per gallon this week. He stated on X that “the next chapter may be written tonight when Trump addresses the nation.”