Gasoline prices rise as US-Iran tensions roil markets | Stories of Ascension

Average gasoline prices in the US hit $4.00 per gallon (3.78 liters), marking a second week of higher consumer prices.

Gasoline and oil prices are rising as tensions between the United States and Iran escalate, with Yemen’s Houthis announcing a blockade of Saudi Arabia’s military.

Benchmark oil prices have risen in recent days, with Brent crude hitting $91.42 on Sunday, before falling 0.1 percent on Monday to $88.04. US West Texas Intermediate (WTI) hit its highest level since June 12 at $85.39 before retreating 2 cents, or 0.2 percent, to $82.29.

The breakdown of the US-Iran ceasefire raised prices amid concerns about tankers passing through the vital Strait of Hormuz, which, before the war, carried about 20 percent of the world’s oil.

These concerns were exacerbated by pressure from Iran on its Houthi allies in Yemen to block the Red Sea shipping route, if the US attack on Iranian assets continues.

US consumers are also feeling the pressure at the pump. The average price of a gallon (3.78 liters) of gasoline rose $4.00, from $3.87 the previous week, according to the American Automobile Association (AAA), which tracks fuel prices daily. It marks the second consecutive week of increases.

The increase comes despite what he says petrol prices start The fall follows a report last week showing consumer price inflation fell 0.4 percent on the month. This was driven by a 9.5 percent drop in fuel prices, according to the Bureau of Labor Statistics Consumer Price Index (CPI), which was released last week.

The inflation data shows a temporary resurgence in the conflict between the US and Iran before the war started again.

Between July 17 and 19, only 30 ships passed through the Strait of Hormuz, according to Kpler data. LSEG’s data shows traffic volumes over the weekend, with only eight vessels passing through the waterway on Saturday and four on Sunday.

The conflict continues to affect the shipping industry. Greece’s Dynacom Tankers said two projectiles hit two of its vessels while they were sailing in a waterway off the coast of Oman. The company did not know who fired the projectiles.

“Energy prices remain important as a resurgence in Middle East tensions adds to concerns that last week’s cooler-than-expected inflation may not be enough to prevent the Fed from raising interest rates later this year,” David Meger, director of metals trade at High Ridge futures, told Reuters.

US markets were mixed on the mounting concerns, and as the US chip sector took a hit after China’s Alibaba previewed its latest smart model, following Apple’s unveiling of AI innovations for its Siri assistant.

The tech-heavy Nasdaq rose 0.6 percent, while the S&P 500 gained 0.2 percent in afternoon trading. The Dow Jones Industrial Average was down 0.25 percent from Monday.

Gold, often seen as a safe-haven asset in times of financial crisis, edged lower on Monday, despite growing tensions. Spot gold was down 0.1 percent at $4,011.96 an ounce in midday trading.

Treasury yields rose 0.5 percent, while the US dollar gained 0.1 percent.