All articles tagged with #gasoline prices
Global oil prices jumped and U.S. stock futures slid ahead of Monday’s session as the Iran-Houthi conflict neared its one-month anniversary, with Brent crude above $116 and U.S. crude near $103 amid supply fears and potential Strait of Hormuz disruption; 3,500 additional U.S. troops arrived in the region, Trump signaled a deal with Iran, and analysts warned prices could surge further, pushing gasoline costs higher.
Amid rising pump prices driven by the Iran war and a tighter global energy market, governors from both parties are largely avoiding gas tax holidays, noting that past attempts in 2022 provided little relief and that state budgets are stretched. Economists say suspending gas taxes would likely deliver minimal savings and could strain transportation funding, making federal action the more plausible lever, even as political calculations differ by state.
Stanford economists warn that higher oil and gasoline costs could largely offset the extra tax refunds Americans are set to receive this year. In a scenario where crude prices spike (with disruption to the Strait of Hormuz) but retreat later, U.S. households could spend about $740 more on gas this year, roughly canceling out the projected $360–$748 in additional refunds from last year’s tax changes. The result is a net drag on spending growth and inflation, with big variation by household — non-drivers and EV owners face less pain while long commuters face higher costs — making the outlook uncertain and tempering the hoped-for fiscal tailwind.
U.S. wholesale prices rose 3.4% in the latest month—the fastest monthly gain in a year—driven by higher energy costs as tensions around Iran push crude and gasoline prices higher.
Trump issued a 60-day waiver of the Jones Act to allow non-U.S.-built ships to move cargo between U.S. ports, aiming to ease fuel and goods flows amid tensions near the Strait of Hormuz. Analysts say the move may have only a modest effect on gasoline prices, which have risen, while oil futures stay elevated as the conflict and related disruptions persist. The administration argues the measure strengthens critical supply chains and energy security, even as broader tensions and continued stockpile releases shape the market.
The Iran war has sent oil and gasoline prices higher—Brent crude up over 40% to about $102/bbl and U.S. gas averages near $3.79/gal—driven by Strait of Hormuz disruptions; economists warn the surge worsens the K-shaped economy by acting like a regressive tax that hits lower- and middle-income households hardest and could curb overall consumer spending, with knock-on effects for diesel, jet fuel, trucking, food, and travel.
President Trump says he will use the Strategic Petroleum Reserve to lower U.S. energy costs amid the Iran war, as the IEA releases a record 400 million barrels to stabilize supply and gasoline prices rise to about $3.58 per gallon.
Nobel economist Paul Krugman argues that a rise in RBOB futures—wholesale gasoline—driven by U.S.-Iran tensions could jeopardize President Trump’s bid to lower living costs and shape the midterm race, noting the contract has surged about 60% year-to-date. He cautions the energy shock, while milder than the 1970s, could lift pump prices and overall inflation, estimating roughly a $15 uptick in oil would add about 0.3 percentage points to the cost of living (a $50 oil spike could push CPI up near 1%). Krugman also highlights broader economic pressures from tariffs, immigration policies, and AI risks, with energy volatility adding to the uncertainty.
Democrats are seizing on President Trump's Iran attack as a new angle in their push on energy affordability, arguing that Middle East instability could lift gasoline prices in an election year when voters are focused on the cost of living. With roughly 20% of the world’s oil and gas flows passing through the Strait of Hormuz, a protracted conflict could disrupt shipments and push prices higher, even as lawmakers debate whether to authorize military action; Democrats like Rosa DeLauro frame the issue as a test of leadership on consumer costs, while Republicans split between backing the strike and seeking restraint. The debate comes as the national gasoline average hovered around $2.98 per gallon.
Russia is experiencing a gasoline shortage exacerbated by Ukrainian drone attacks on refineries, which have damaged multiple facilities and increased domestic fuel prices. Despite these disruptions, Russia's large fuel reserves, surplus diesel production, and the ability to import fuel help mitigate a full-scale crisis, though the situation remains challenging and could worsen if attacks continue or escalate.
Ukraine has intensified drone attacks on Russian energy infrastructure, targeting refineries and pipelines, which has led to record-high gasoline prices in Russia and shortages in some regions. These strikes aim to weaken Russia's war effort and disrupt daily life, while Ukraine also seeks to impede Russian oil exports and develop long-range missile capabilities. The ongoing attacks are causing economic strain in Russia, with no immediate relief expected.
Ukraine has intensified drone attacks on Russian energy infrastructure, targeting refineries and fuel supplies, which has led to record-high gasoline prices in Russia and shortages in some regions. These strikes aim to weaken Russia's war effort and disrupt daily life, while Ukraine also develops long-range missile capabilities to further damage Russian energy assets. Despite sanctions and logistical challenges, the conflict continues to impact Russia's fuel supply and economy.
Ukrainian drone strikes have significantly damaged Russian oil refineries in the Far East, causing fuel shortages, long lines at gas stations, and record-high gasoline prices, with the crisis exacerbated by seasonal demand and logistical delays.
Wholesale gasoline prices in Russia have hit record highs due to Ukrainian drone strikes damaging key refineries, disrupting supply amid peak seasonal demand, with experts divided on when prices will fall and concerns over potential fuel shortages.
Gasoline prices haven't dropped significantly despite falling oil futures, due to only modest recent price increases and ongoing seasonal demand, but prices may decline further as global supply remains strong and demand wanes later in the year.