Breaking through $3.10 at the speed of light! U.S. gasoline prices hit the biggest increase in four years, and the upward trend is expected to continue in the coming weeks.

Caixin March 4th (Editor Liu Rui) On Tuesday, Eastern Time, as conflicts in the Middle East intensified, crude oil prices continued to soar. Gasoline prices at U.S. gas stations have risen sharply, increasing from about $2.90 per gallon to over $3.10 within just two days.

According to data from the American Automobile Association (AAA), the national average gas price increased by $0.10 in the past 24 hours, reaching nearly $3.11 per gallon.

This is the largest single-day increase in U.S. gasoline prices since March 2022. All states except Hawaii experienced a rise in gas prices on Tuesday.

Furthermore, as the conflict in the Middle East drives up oil prices, which are passing through to retail gas stations, prices are expected to rise further in the coming days.

“This will happen very soon,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in an interview.

De Haan stated that the increase in oil prices is “intensifying” the demand for gasoline in the U.S., and it is expected that the national average price will rise another $0.10 to $0.25 per gallon in the next week or two (depending on whether the conflict eases).

Additionally, most parts of the U.S. have recently started using cleaner but more expensive gasoline to prepare for the spring driving season.

De Haan said:

“Seasonal factors combined with U.S. attacks on Iran will definitely lead most drivers to believe that current gasoline prices will rise. This upward trend will not only occur in the coming days but could last for several weeks, or even two or three months.”

Energy prices may further increase

Due to soaring war risk insurance premiums and halted shipping activities through the Strait of Hormuz (a critical chokepoint for global oil transportation), oil prices have been pushed higher.

Several Wall Street strategists have warned that if the conflict persists longer, energy prices could rise further.

JPMorgan analysts stated on Monday: “If ships passing through the Strait of Hormuz are restricted for 3 to 4 weeks, Brent crude oil prices could rise above $100 per barrel. About 20% of global oil transportation passes through this strait.”

As of press time, the international benchmark Brent crude futures rose to around $80 per barrel. Meanwhile, the U.S. benchmark WTI crude futures continued the previous trading day’s gains, staying above $76 per barrel.