US Petrol Prices Reach 50 Percent Higher Than Pre-War Levels

US Petrol Prices Reach $4.48 Per Gallon, AAA Reports

The average price of petrol in the United States has increased to $4.48 per gallon, according to data from the American Automobile Association (AAA). This represents a 31-cent rise over the past week. The current price is 50% higher than it was before the US-Israel war on Iran began.

According to AAA’s website, the price of petrol was listed at this rate as of Wednesday. However, US President Donald Trump had previously paused the military operation “Project Freedom” in an effort to open the Strait of Hormuz. The global energy crisis caused by the conflict has led to a significant increase in crude oil prices.

Crude oil is the primary ingredient in petrol, and the Strait of Hormuz, which is a narrow passage in the Gulf, has been blocked, resulting in stranded oil tankers unable to deliver crude. This has led to a shortage of crude oil, driving up prices.

Industry expert Rob Smith, director of global fuel retail at S&P Global Energy, stated that there will be “upward pressure on prices” as long as the Strait of Hormuz is constrained. He noted that the risk premium associated with shipping through this region will remain high, making it difficult to predict when prices will return to normal.

The spike in energy prices has contributed to inflation and economic uncertainty, affecting Trump’s approval rating, which has reached record lows amid growing discontent with the war on Iran.

Source: Al Jazeera