On Tuesday, U.S. drivers faced the steepest pump prices in about four years as the Iran conflict and stalled diplomacy kept crude markets tight. The average cost of a gallon of gasoline hit $4.23, a level not seen since April 2022, according to AAA.
Pump prices are up more than 40% since the fighting began in late February. United States Gasoline ETF (NYSE:UGA), which allows investors to make a direct play on gasoline, gained about 2% on Tuesday.
Why Gas Prices Are Surging Again
The milestone came as negotiations around the reopening of the Strait of Hormuz and constraints tied to Iran’s nuclear program remained stuck. This will continue to disrupt oil flows through the Hormuz, which handles about one-fifth of global shipments, and send oil prices soaring.
Oil is doing most of the heavy lifting behind the jump, since crude makes up about 51% of what drivers pay at the pump, according to the CBS
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