WASHINGTON — American gas prices dropped slightly Tuesday, despite uncertainty over the ceasefire talks with Iran and trade in the Strait of Hormuz amid a military blockade. The national average for a gallon of regular gasoline was $4.118 on Tuesday, according to AAA, which is a slight drop from Monday's average of $4.125. Still, prices remain significantly higher than earlier this year and when compared to last year. The average price for a gallon of gas in the United States this time last year was about 94 cents lower. The recent dip comes after a ceasefire agreement with Iran, following the closure of the Strait of Hormuz, where roughly 20% of the world's crude oil travels through. But troubled waters appeared to be on the horizon for traders, as the U.S. Central Command announced that a blockade of ships entering or leaving the strategic strait would begin Monday. Gas prices remained elevated across the country, with every state averaging at least $3.442 per gallon. The highest prices continue to be on the West Coast, led by California at $5.884, followed by Hawaii at $5.650 and Washington at $5.393. California, Hawaii and Washington are the only states with average gas prices at more than $5 per gallon. Meanwhile, the lowest prices are in the Great Plains and South, including Oklahoma at $3.442, Kansas at $3.495 and Nebraska at $3.606. Diesel prices also dropped slightly on Tuesday compared with Monday. The average cost of a gallon of diesel on Monday was $5.650, compared to $5.652 on Sunday. Despite the decrease, diesel costs remain near record highs, continuing to put pressure on transportation and supply chains. Why might prices differ from one gas station to the next? Although the national average passed $4 a gallon, the price that drivers pay varies widely by state, city and station. Taxes alone can create large gaps. California's gas taxes and fees totaled about 71 cents per gallon last year, compared with roughly 9 cents in Alaska. Distance from refineries, the type of retailer, the volume the location goes through, and whether there are other fuel options nearby also play a role. Gas stations near competitors may choose to price gasoline competitively on large outdoor signs to attract drivers, hoping they'll come inside and buy higher-margin items, said Neal Walters, a partner focused on energy at the global management consulting firm Kearney. “It’s one of the only retail locations where you don’t have to go into the store to find out what you’re paying,” Walters said. Why are gas and diesel prices elevated? Prices began to rise sharply after the U.S. and Israeli attack on Iran on Feb. 28, which led to escalating tensions and military conflicts across the Middle East, where a large majority of global oil is sourced and distributed. While not the sole factor for rising costs, volatile trade routes and other uncertainties in production have led to higher prices of crude oil, which is refined to make diesel, gasoline and jet fuel. Crude oil has surpassed $100 per barrel several times in recent weeks, driving higher fuel costs. Rising diesel and jet fuel prices are also expected to increase transportation and air travel costs, potentially pushing up prices for goods across supply chains. Highest average gas prices ever? The record for the highest average price of a regular gallon of gas was set on June 14, 2022, with a national average of just over $5 during the early months of Russia's invasion of Ukraine. The highest recorded average gallon of diesel, $5.816, came just five days later on June 19, 2022. The Associated Press contributed to this report.
WASHINGTON — American gas prices dropped slightly Tuesday, despite uncertainty over the ceasefire talks with Iran and trade in the Strait of Hormuz amid a military blockade. The national average for a gallon of regular gasoline was $4.118 on Tuesday, according to AAA, which is a …
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.
Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.
Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.
Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.
A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.
Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.
But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.
A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.
The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.
Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.
47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.
US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.
The US military described the action as a precision operation, while reports note the ship was stationary at the time.