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US Gas Prices Top $4 Amid Iran Conflict

Financial Times Markets •
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US petrol prices have climbed back above $4 a gallon, driven by the escalating conflict between the US and Iran. The surge in prices at the pump, confirmed by AAA data, reflects the growing impact of the Middle East tensions on American consumers. This rise in fuel costs presents a significant challenge for President Donald Trump, particularly with midterm elections approaching in November.

The conflict, which began in late February, has significantly disrupted global energy markets, pushing crude oil prices above $100 a barrel earlier this year. While a temporary ceasefire in April brought some relief and contributed to a June inflation rate of 3.5%, the recent renewal of hostilities has reversed this trend. Crude oil prices have rebounded, with Brent crude reaching $90 a barrel and West Texas Intermediate trading around $85 a barrel.

Analysts warn that dwindling global oil stockpiles leave Western economies with limited buffers against further price increases. "Every oil shortage can become a fuel crisis," stated Kevin Book of Clear View Energy. The rising cost of fuel is also a growing concern for voters, with polls indicating dissatisfaction with the conflict's cost and a slip in Trump's approval ratings.