US gas prices rose by 6 cents to an average of $4.18, marking the highest price since August 2022, based on the latest report from AAA.
It marked the biggest single-day jump in five weeks, and climbing oil futures indicate that even greater gas prices are likely to follow. Oil futures rose approximately 3% to $111 a barrel on Tuesday.
Average US gas prices dropped to $4.02 after two weeks following the initiation of the ceasefire in the Iran conflict. However, worries about halted peace negotiations without a resolution to reopen the Strait of Hormuz have caused prices to soar once more.
Wholesale gasoline futures are increasing as the United States quickly reduces its stockpiles. In recent years, the United States maintained approximately 250 million barrels of gas in reserves, but current inventories have dropped below 230 million, as stated by Andy Lipow, president of Lipow Oil Associates.
With the United States exporting unprecedented volumes of crude and refined products to compensate for losses from the Middle East, US prices are anticipated to increase further. Lipow projected that average gas prices might increase to $4.30 within the next week to ten days.
California, historically having the highest average price among all states, now sees an average price nearing $6 per gallon, currently at $5.97.