Volkswacht Bodensee - US gasoline costs back at $4 a gallon as Mideast war reignites

The uptick underscores the political risks faced by US President Donald Trump ahead of crucial midterm elections in November, with affordability shaping up to be a key worry among voters.

Prices at the pump breached this threshold in March after US-Israel attacks targeting Iran sparked Tehran's retaliation in virtually closing off the Strait of Hormuz -- a key waterway for energy transit.

Global oil prices soared in the wake of the conflict, sending US gasoline costs higher as well.

Prior to that, the last time prices surged above $4 a gallon was in 2022, on the back of Russia's invasion of Ukraine.

The national average cost for a gallon of regular gasoline was $3.14 a year ago.

US households saw some temporary respite in recent weeks as gasoline prices -- which have been squeezing families' budgets -- dropped below the $4 per gallon average on an interim deal between Washington and Tehran.

But fighting has since resumed.

American households have been hit by years of price increases, and the energy price shock this year sent inflation to a three-year high.

Iran said Monday that it is fighting a "full-scale war" with the United States, as Washington widened strikes across the Islamic republic. Iran, in turn, continued its attacks across the region.

For now, Iran's Interior Minister Eskandar Momeni is set to travel to mediator Pakistan's capital on Monday, a Pakistani source said.

Iran's foreign ministry spokesperson also signalled Monday that diplomatic exchanges with the United States -- via mediators -- were ongoing.

B.Wyler--VB