Gasoline prices in America rose to their highest level since April following a war with Iran.

A gas station in Los Angeles, USA (French)

 Gasoline prices in the United States continued their upward trend on Thursday, reaching their highest level since April of last year, according to data from the American Automobile Club.

This came after oil prices resumed their rise during trading on Thursday, following the continuation of the Israeli-American-Iranian conflict, which led to the closure of the Strait of Hormuz and the cessation of crude oil exports from the region.

The average price of unleaded gasoline reached $3.25 per gallon, up from $3.20 on Wednesday, after starting the week at $3.00.

In California, the price of a gallon of gasoline reached $3.81. A gallon is equal to 3.78 liters.

According to The New York Times, the impact of rising oil prices on gasoline prices in the United States was faster than many analysts had anticipated.

The US president acknowledged in recent days that the conflict could raise oil prices for Americans, at least temporarily, at a sensitive time when attention is focused on the midterm congressional elections scheduled for November.

U.S. Energy Secretary Chris Wright told Fox News on Wednesday that the impact of a war with Iran on energy markets would be temporary and negligible compared to achieving U.S. military objectives, but he acknowledged that gasoline prices could see a slight increase.

A rise in gasoline prices poses a significant risk to U.S. President Donald Trump and his Republican Party ahead of the midterm elections in November, where inflation remains a major concern for voters.

Gasoline Price Hikes and Household Budgets

Higher gasoline prices are immediately putting pressure on household budgets, especially for those with low and middle incomes.

As the increased costs are passed on to transportation, goods, and services, it becomes increasingly difficult to maintain the narrative of "retreating inflation," which had recently been reinforced by US data.

Higher oil prices quickly translate into increases in refined products (gasoline, diesel, jet fuel, and marine fuel), and with them, the cost of land, sea, and air transportation.

A gas station in California, USA (French)

According to a report in The Wall Street Journal, every $10 increase in the price of oil can add about 15 cents per gallon at the pump and raise inflation by about 0.1 percentage points in the US, with even greater inflation if prices remain high for an extended period.

Oil prices resumed their upward trend today, with Brent crude rising 1.65% to $82.70 a barrel and US crude climbing 2.13% to $76.25 a barrel at the time of writing.

Before the outbreak of the war with Iran, oil was trading at around $72 a barrel.

Reuters quoted PVM analyst John Evans as saying that oil markets are experiencing a supply shortage, and that the Chinese government has instructed its largest refineries to suspend exports of diesel and gasoline.

ANZ analysts said in a note on Thursday that crude oil markets are closely monitoring supply risks stemming from the war in the Middle East, with particular concern for shipments through the Strait of Hormuz.

Approximately 20 million barrels of oil and about 20% of the world's liquefied natural gas (LNG) supply pass through the Strait of Hormuz daily.

Iran's Revolutionary Guard said on Thursday that it targeted a US tanker in the northern Gulf and that the ship caught fire. The Guard added that in wartime, passage through the Strait of Hormuz would be under Iranian control, according to a statement carried by state media.

Source: Al Jazeera + Reuters + CNBC + New York Times