US gasoline prices climbed back over the $4-a-gallon mark at the pump as the conflict in the Middle East escalated, threatening to exacerbate a global crunch for transportation fuels and stoke inflation.

The surge follows recent spikes in crude supply constraints, as geopolitical tensions near the Strait of Hormuz have tightened flows. Analysts warn that sustained high prices could push consumer spending lower and pressure manufacturing costs, adding to inflationary pressures that have already nudged the Consumer Price Index higher.

Energy sector players are watching closely, with major refiners adjusting margins to accommodate the higher input costs. The Federal Reserve has noted the potential impact on the broader economy, while transportation-linked industries and households brace for continued volatility.

Fuel price volatility remains a key factor for both consumers and businesses, and the market expects further fluctuations as conflict dynamics evolve and global fuel markets adjust.