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Why gasoline costs 52% more in the US than it did before the Iran war

The Independent·Cathy Bussewitz·27 days ago
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The price of a gallon of regular gasoline in the U.S. climbed 31 cents in the past week, spiking to an average of $4.54 per gallon Wednesday, a price 52% higher than before the war with Iran began, according to AAA data. The main reason drivers are paying more at the pump is because the war has stranded oil tankers near the Strait of Hormuz , a narrow passage through which a fifth of the world’s crude oil normally passes. The price of crude oil, which is the main ingredient in gasoline, climbed for most of the past two months because Iran has effectively shut the waterway located off its coast. In mid-April, U.S. gasoline prices fell daily for almost two weeks amid signs the conflict could be winding down. “After the announcement of the initial ceasefire, there was kind of optimism that this really could be the beginning of the end of the conflict,” said Rob Smith, director of global fuel retail at S&P Global Energy.…

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