Average US gas prices have hit a new high at $4.23 a gallon, their highest since 2022 and a record since the start of the war with Iran, according to the motor club AAA.
The price of Brent crude, the benchmark that influences the price of gasoline in the US, now stands at $114.60 a barrel, up nearly 25% from the recent low since mid-April. US gas prices a year ago averaged $3.16 a gallon.
The milestone comes as US officials contemplate an extended blockade by the US and Iran of the strait of Hormuz, the transit chokepoint for 20% of the world’s oil.
“A significantly bigger risk arises if higher gasoline and oil prices leak into other necessities such as grocery and utility prices – though so far there is little evidence for this,” said Bank of America analysts in an NBC News report.