WASHINGTON — Gasoline prices across the United States are climbing sharply as global oil markets react to renewed geopolitical tensions following the collapse of ceasefire talks in the Middle East.
The national average price for gasoline is sitting at about $4.07 per gallon, up more than 39 cents from a month ago and nearly a dollar higher than a year ago, according to data from GasBuddy. Diesel prices are also rising, averaging more than $5.61 per gallon.
Analysts say prices are poised to climb further after oil surged following the breakdown in negotiations and the prospect of a U.S. blockade of the Strait of Hormuz, a key global shipping route for crude.
Patrick De Haan, head of petroleum analysis at GasBuddy, says motorists should prepare for another round of increases as supply concerns grow.
Oil prices jumped in early trading, with West Texas Intermediate crude rising more than $7 to just over $104 per barrel, reflecting renewed fears of disruption to global supply.
The Strait of Hormuz handles roughly one-fifth of the world’s oil shipments, making it a critical chokepoint for global energy markets.
Experts say any sustained disruption could drive fuel prices higher not only in the United States but globally, adding pressure on transportation costs, supply chains and inflation.
While prices had briefly eased following a temporary ceasefire announcement, the latest developments have reversed that trend, with markets once again factoring in the risk of prolonged instability.
De Haan says Canada is likely to see price surges similar to the USA.
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