US gasoline crosses $3 per gallon mark in test of Trump s Iran war

Average retail gasoline prices in the U.S. surpassed $3 a gallon on Monday, marking the first time since November, as the situation in the Middle East escalates. This development poses a significant challenge for public support of President Donald Trump's decision to engage with Iran, according to analysts. Iran's response to U.S. and Israeli attacks has disrupted oil supplies globally, affecting production in neighboring nations and shipping routes in the Strait of Hormuz, a crucial area for trade. Oil prices have increased sharply, with Brent crude climbing over 5% to nearly $77 per barrel, causing fuel prices to rise in line with the higher crude costs. These rising prices could be a serious issue for Trump and his Republican allies as they approach the midterm elections in November. Many Americans are already feeling the burden of increasing costs for daily necessities. A recent Reuters/Ipsos poll indicated that nearly half of those surveyed would be less inclined to back Trump’s actions in Iran if gasoline prices rise in the U.S. Mark Malek, chief investment officer at Siebert Financial, commented, "Gasoline prices are very impactful. They represent the inflation that consumers see every day." Analysts predict that for every $10 increase in crude oil prices, gasoline prices at the pump could increase by 25 cents. Malek also warned that refinery issues could lead to even larger spikes in fuel costs. According to an OPIS live database, average retail gasoline prices reached $3 a gallon on Monday. Tom Kloza, a senior adviser with Gulf Oil, forecasts that prices could rise to $3.25 per gallon this week due to the ongoing crisis. Before the attacks on Iran, U.S. gasoline prices had already climbed for four consecutive weeks, as data from GasBuddy revealed. This was due to refiners transitioning to summer-grade motor fuel, which is mandated by environmental rules and is more expensive to produce. Patrick De Haan, an analyst at GasBuddy, noted that the conflict would worsen the price increases. "In the coming week, gasoline prices are expected to experience increased upward pressure as seasonal trends continue, and markets adapt to this changing geopolitical situation," he said.