U.S. consumers are having to dig deeper into their wallets to pay for transportation, as average gas prices across the country are now above $4 for the first time since 2022 when Russia invaded Ukraine.
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Trade QQQ with leveragePrices have surged by 35%, or $1.04, to $4.01 since the U.S. and Israel launched a joint attack on Iran on February 28. Iran responded by restricting passage through the Strait of Hormuz, which handles 20% of global oil flows.
Oil Surges as Gas Prices Weigh on U.S. Consumers
Since then, Brent crude oil futures (BZ) have surged 40%, while WTI crude oil futures (CL) have climbed 44%. Brent crude is the international benchmark for oil, while WTI crude is the U.S. benchmark.
Higher gas prices could dull consumer sentiment and spending, although the magnitude will ultimately depend on how long the war persists. “But a prolonged crisis could prompt more precautionary saving and further discretionary spending cuts,” wrote analysts at Moody’s. Prices are still roughly $1 below the all-time high of $5.01 per gallon seen in June 2022.