U.S. gasoline prices reach $4.50, approaching a new all-time high

The Coin World Network reports that U.S. gasoline prices have touched $4.50, nearing a record high. Ongoing conflicts in the Middle East are adding further pressure. On Tuesday, the national average retail price of regular unleaded gasoline rose to $4.54 per gallon, for the first time since July 2022, surpassing $4.50 per gallon. The current level is only about 50 cents short of the all-time record of $5.01 per gallon set in June 2022. From a seasonal perspective, current prices are at the highest level ever for the same time of year.

U.S. President Trump has repeatedly promised that gasoline prices will fall after the Iran war ends. But the longer prices remain elevated, the greater the political risk the Republican Party faces in the November midterm elections. In addition, nationwide U.S. gasoline inventories are at the lowest levels for this time of year since 2014. Morgan Stanley expects summer gasoline inventories to tighten further, suggesting inventories could reach new lows for this period in history.