Gas Prices Near Year-Long High as Midterms Loom
U.S. gas prices near $4.50 per gallon, nearing all-time highs amid rising diesel costs and global tensions.
POLICY WIRE — Washington, D.C. — U.S. gas prices edged closer to their annual peak this week, with the national average climbing to $4.46 per gallon after a 3-cent increase overnight.
The current level is just 10 cents below the record high of $4.56 recorded on May 21, and remains within reach of the all-time high of $5.01 set in June 2022 during the Russia-Ukraine conflict.
California leads the nation with an average price of $6.11 per gallon, while several other states, including Michigan, Utah, and Illinois, are approaching the $5 threshold. The surge follows a 50% increase since February, when the U.S. and Israel targeted Iran, and diesel prices have hit new daily records, reaching $6.44 per gallon on Friday.
Diesel cost increases are pushing up consumer expenses by raising the cost of transporting goods, affecting shipping, rail, and trucking industries. Despite President Donald Trump’s earlier claims that fuel prices would drop once the war ends, he has recently acknowledged that energy costs may remain elevated for longer than expected.
With less than eight weeks until the midterms, public frustration over inflation and rising prices is growing. A recent University of Michigan survey showed a sharp decline in consumer confidence, and social media platforms are filled with complaints from voters, even those who previously supported Trump.
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Trump has pledged to bring gas prices below $2 per gallon, but such a target is unrealistic given that unleaded gas has not been under $2 since the 2020 pandemic. Analysts warn that prolonged conflict in the Middle East could push Brent crude oil prices toward $120 per barrel, with Goldman Sachs and Bank of America predicting even higher levels if tensions escalate.
Brent crude approached $105 per barrel on Friday, while U.S. crude hovered just above $103. The situation in the Strait of Hormuz remains tense, with transits significantly reduced and insurance costs for tankers skyrocketing due to ongoing military activity by both U.S. and Iranian forces.
Iran has continued attacking oil infrastructure, disrupting supply chains across the region. Last week, a critical Saudi pipeline was shut down after multiple attacks, and it remains unclear when operations will resume. Meanwhile, Russia’s extended diesel export ban, triggered by Ukrainian drone strikes, has further exacerbated global fuel shortages.
Trump has criticized Ukrainian President Volodymyr Zelenskyy for targeting Russian energy assets, claiming it causes global diesel shortages. In response, Zelenskyy stated that Ukraine will stop such attacks only if Russia halts strikes on its infrastructure. Recent strikes on Russia’s Yaroslavl oil refinery have further complicated the energy landscape.
As global fuel prices climb, world leaders are seeking solutions. French President Emmanuel Macron called for a G-7 meeting to address energy costs, recalling previous efforts to release strategic oil reserves. However, these reserves are now at historic lows, limiting the effectiveness of such measures.
Reporting by Policy-Wire (PW)
