US gasoline retail price breaks above $3.75 per gallon for the first time since October 2023

GasBuddy data shows that due to supply disruptions caused by the Middle East conflict, the global fuel market remains volatile. The average U.S. gasoline price broke above $3.75 per gallon on Tuesday, the highest since October 2023.

Rising oil prices are likely to increase the burden on consumers and have sparked dissatisfaction with President Trump’s decision to team up with Israel to attack Iran before the November midterm elections. These elections will determine control of Congress. Trump aims to secure a successful re-election in 2024, with a core campaign promise to lower energy costs for consumers.

The Middle East conflict has disrupted oil supplies from one of the world’s major oil-producing regions. Attacks by Iran on ships in the Strait of Hormuz have hindered oil exports from Gulf producers.

U.S. gasoline inventories remain relatively ample, with about 28.5 days’ worth of supply as of last weekend, the highest since 2021. However, global market tightening and war-driven oil price surges have led to higher retail gasoline prices.

Crude oil costs are the largest component of retail fuel prices. Real-time GasBuddy data shows that since the U.S. and Israel attacked Iran in late February, the national average retail gasoline price has risen by about 84 cents per gallon, reaching $3.83 per gallon as of 4:55 p.m. Eastern Time on Tuesday.

Meanwhile, U.S. West Texas Intermediate (WTI) crude futures jumped from $67.02 per barrel to $96.16.