US gas prices hit highest level since 2022 amid Middle East tensions

Average gasoline prices in the United States have risen to $4.18 per gallon, the highest level since August 2022, according to data from AAA.

The 6-cent increase marks the largest one-day rise in five weeks, and analysts warn that prices may continue to climb as global oil markets tighten. Oil futures rose about 3% to $111 per barrel on April 28, adding further pressure on fuel costs, CNN reports.

Prices had fallen for two weeks to $4.02 following the start of a ceasefire in the conflict involving Iran. However, concerns over stalled peace talks and uncertainty about reopening the Strait of Hormuz have pushed prices higher again.

At the same time, wholesale gasoline prices are increasing as US inventories decline. Stockpiles have dropped below 230 million barrels, compared with about 250 million barrels in previous years, according to industry data.

The decline reflects strong export demand, as the United States ships record amounts of crude oil and refined products to help offset supply disruptions linked to the Middle East.

Andy Lipow, president of Lipow Oil Associates, said average US gas prices could rise to around $4.30 per gallon within the next week to 10 days if current trends continue.

Prices vary widely across the country. California, which has the highest fuel costs, is nearing $6 per gallon, with an average price of $5.97.

By Sabina Mammadli