US fuel prices climb sharply amid Iran war
US gasoline averaged about $4.29 a gallon on 26 Oct, according to AAA, up from $3.05 a year earlier and roughly 43% higher since the conflict with Iran began in February. Diesel averaged about $6.35 a gallon after hitting a record $6.53 in September. GasBuddy analyst Patrick De Haan expects gasoline to stay above $4 and diesel above $6 through Election Day. The Centre for Research on Energy and Clean Air (CREA) estimates US consumers have paid an extra $471 in fuel costs since the war began. White House spokeswoman Taylor Rogers said prices would fall once the conflict ends.
Key facts
- Gasoline averaged $4.24 a gallon on 26 Oct, down 22 cents from a month earlier.
- The US has spent an estimated $160 billion in extra fuel costs since the war began, per CREA.
- Middle East oil exports averaged 24.6 million barrels a day in the week to 18 Oct, the highest since the war began.
- Consumer inflation expectations for the next year rose to 4.7% in an October survey, from 4.6% in September.
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Why it matters
Sustained high fuel costs raise household expenses and inflation expectations ahead of the US election.
What changed
First published from OilPrice.com, The Straits Times and Fortune