Fuel prices in the US are rising after the attack on Iran. Donald Trump may pay dearly for this
Iran's retaliation after US and Israeli attacks disrupted global oil supplies. The strikes affected production infrastructure in neighboring countries and ships in the Strait of Hormuz – one of the world's key trade routes.
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Oil prices have skyrocketed. Brent crude oil prices jumped by over 5%, to almost $77. per barrel. Fuel prices go hand in hand with rising raw material costs.
Analysts quoted by the agency estimate that oil price increase by $10 per barrel translates into an average increase of 25 cents per gallon of gasoline at the pump. Problems at refineries could further deepen the scale of price increases.
US attack on Iran, rising oil prices and political risk before the elections
Higher fuel prices are significant political risk for Trump and the Republican Party ahead of the November midterm elections. Many Americans still struggle with the high cost of living.
A Reuters/Ipsos poll shows that nearly half of respondents would be less likely to support Trump's actions against Iran if U.S. oil and gas prices rise.
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— Gasoline prices have enormous psychological power. This is the inflation rate that consumers see every day – said Mark Malek, investment director at Siebert Financial, quoted by the agency.
Fuel prices in the US may become even more expensive
According to data from the OPIS database, The average retail price of gasoline exceeded $3 on Monday. per gallon. According to Tom Kloza, an advisor at the Gulf Oil fuel company, this week it may go up to $3.25. per gallon.
Fuel prices in the US had already been rising for four weeks before the attacks on Iran – according to data from the GasBuddy website. Refineries have started switching to a more expensive summer fuel mixture, required by environmental regulations.
GasBuddy analyst Patrick De Haan warned in an interview with Reuters that conflict may further strengthen upward pressure.
— Gasoline prices will likely come under stronger upward pressure in the coming week as seasonal trends persist and markets respond to the changing geopolitical situation, he said.
