Gas prices top $4.50 a gallon, reaching highest level since July 2022
CBS News • • business
Key Points:
- Gasoline prices in the U.S. reached an average of $4.54 per gallon, the highest since July 2022, driven by a 52% increase since the Iran war began in late February due to Middle East oil supply disruptions.
- Despite oil prices falling on hopes of a U.S.-Iran agreement, fuel costs have risen due to ongoing supply concerns and escalating violence in the region, especially impacting states in the Great Lakes area.
- Brent crude and West Texas Intermediate prices declined significantly, but global oil supply remains constrained as the Strait of Hormuz, a key transit route for 20% of the world's oil, is largely closed to shipping.
- Experts predict gas prices will stay elevated for months even if peace is achieved, with Brent crude expected to average around $80 a barrel by year-end, higher than pre-conflict levels, amid low global oil inventories.
- Factors such as petroleum supply levels, refinery recovery in the Middle East, and seasonal demand contribute to ongoing price volatility, suggesting that broad relief at the pump is unlikely in the near term.
