Gas prices hit $4.23 per gallon, a new high for the year
NBC News • • business
Key Points:
- U.S. gas prices have reached a new high of $4.23 per gallon amid the ongoing conflict with Iran, driven by a surge in oil prices due to a dual blockade of the Strait of Hormuz.
- Brent crude oil prices have risen nearly 25% since mid-April, nearing $115 per barrel, significantly influencing U.S. gasoline costs.
- Gasoline prices have increased by more than 40% since the war began in late February, compounded by seasonal refinery maintenance and increased driving demand.
- Retailers have been absorbing lower profit margins to keep gas prices under $4, but this margin squeeze is the most severe since 2020.
- While lower-income households are currently most affected by higher gas prices, broader economic risks remain if fuel cost increases spread to essentials like groceries and utilities, potentially straining consumer budgets further.
