National average hits $4.08 per gallon, surpassing August 2022 record

Brent crude breaks $90 as Strait of Hormuz tensions flare

Trump threatens to strike Iran's Kharg Island, its largest oil export hub

Ships pass through the Strait of Hormuz near the coast of Bandar Abbas, Iran, on Wednesday (local time). [Reuters]
Ships pass through the Strait of Hormuz near the coast of Bandar Abbas, Iran, on Wednesday (local time). [Reuters]

Average gasoline prices in the United States stayed above $4 per gallon for every single day of August — a first in history. With US-Iran military clashes flaring up again and international oil prices climbing in response, American consumers could face even steeper costs at the pump.

According to the American Automobile Association and other sources, the national average gasoline price stood at $4.08 per gallon on Monday (local time). It marked the first time the US average has remained above $4 for every day of August.

This August's prices also surpassed the previous record set in August 2022, when global oil prices surged during the COVID-19 pandemic.

In the United States, gasoline prices typically ease in late August as summer vacation travel winds down and driving demand falls. This year, however, rising crude oil prices have overwhelmed the seasonal demand slowdown.

"Demand for gasoline typically decreases at this time of year, but rising crude oil prices are pushing up the national average," AAA said recently.

Renewed fighting between the United States and Iran has rattled oil markets. Mounting tensions around the Strait of Hormuz — a critical chokepoint for global crude shipments — have stoked fears of supply disruptions.

US forces struck two rocket-launch sites on Iran's Larak Island in the Strait of Hormuz on Monday. Iran immediately retaliated, launching missile and drone strikes against US military bases in Jordan and the UAE.

President Donald Trump signaled the possibility of further strikes on Kharg Island, Iran's largest oil export hub, warning on his Truth Social platform that the island would be "blown to pieces."

International oil prices surged as Middle East tensions escalated. Around midday Eastern time, Brent crude futures rose $2.17, or 2.46 percent, to $90.27 per barrel, breaking through the $90 mark. West Texas Intermediate also climbed $2.06, or 2.47 percent, to $85.46 per barrel.

If oil prices continue to rise, US gasoline prices are likely to remain elevated for now. Gasoline is one of the items Americans feel most directly when prices rise, and there are growing concerns that higher oil prices driven by Middle East tensions could reignite inflationary pressures in the United States.


sjy@heraldcorp.com