Gasoline prices rose to $4.48 a gallon on Tuesday as oil prices remained above $100 a barrel.
The national U.S. average has risen sharply in recent days, climbing nearly $0.31 in the past week and $1.32 higher than a year ago. According to AAA data.
“It really shows no signs of stopping anytime soon,” Patrick de Haan, head of petroleum analysis at GasBuddy, told Yahoo Finance on Tuesday.
Retail gasoline prices have increased nearly 50% since the start of the Iran war due to rising oil prices. “Every day that we see the Strait of Hormuz closed, we’re potentially getting closer to seeing new records for gasoline here,” de Haan said.
Brent crude futures (BZ=F) fell to $110 a barrel on Tuesday. West Texas Intermediate (CL=F) neared $101 as the US said the truce with Iran stands, and Washington moved ahead with initiatives to rescue stranded ships near the Strait of Hormuz.
Read more: Find the Best Credit Cards to Buy Gas
“If the Straits remain closed another month, we’ll be at $5.00 a gallon,” Andy Lipo, president of Lipo Oil Associates, said Monday.
California, which has higher tariffs and taxes and lacks enough refineries, is already seeing a state average of $6.11 per gallon.
At the same time, diesel prices reached new records in some parts of the country. Some areas, such as Illinois and Michigan, are touching the $6 per gallon mark as refinery issues in the region put upward pressure on prices.
JPMorgan analysts noted last week that while Southeast Asia faces the most direct supply threat from the Middle East conflict, the US has ironically been the second-most affected region.
The combination of constrained refining capacity growth, regionally fragmented refined fuel markets and US exports of gasoline and other energy products have contributed to higher prices at the pump in the US.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X et @ines_ferrre.
Click here for latest stock market news and in-depth analysis of stock price movement events
Read the latest financial and business news from Yahoo Finance“=