The rise in U.S. gasoline prices continued amid disruptions to energy supplies and higher global energy costs. The average gasoline price rose 50.7% from $2.98 to $4.49 per gallon since the war with Iran began.
The price of a gallon of gasoline, equivalent to 3.7 liters, was recorded at $4.49 on Friday. The price thus approached the $5.01 level seen during the fuel crisis in 2022.
Diesel prices approach $6.52 record high
The price of diesel in the United States also rose to $6.50 per gallon. This is just below the record high of $6.52 recorded on September 22.
Diesel was priced at $5.96 on September 7. The increase is affecting the costs of transportation by truck, train and ship, as well as those of the agricultural sector.
Disruptions in the straits heighten shipping concerns
The closure of the Strait of Hormuz and disruptions to maritime transport in the Bab el-Mandeb Strait increased concerns over energy shipments.
There are concerns that higher fuel costs will increase pressure on goods prices in the United States. The reliance of broad sections of the economy on diesel directly affects transportation and supply chain costs.
Conflict reverberates through global markets
The war has caused significant volatility in global markets, pushed up oil prices and inflation, and slowed economic growth. Rising fuel prices have sparked protests in countries including Portugal, Syria, Indonesia and Guatemala.
The United States and Israel launched a war against Iran on February 28. Iran responded with attacks on Israel and targets it said belonged to the United States in the region; the sides reached a ceasefire agreement in April.
Washington and Tehran signed a memorandum of understanding on freedom of navigation in the Strait of Hormuz on June 18. However, disagreements over the strait's security hindered the implementation of the memorandum.
The United States resumed its attacks on Iran between July 8 and 24, while Iran targeted military facilities and equipment in Arab countries that it said belonged to the United States.
