The average price for a gallon of gasoline reached its highest level in four years on Tuesday, climbing to $4.18, according to AAA. This marks the steepest increase since the start of the Iran conflict, with prices rising by $1.20 per gallon since the war began on Feb. 28. The latest surge follows a brief period of relief when prices eased after a two-week ceasefire was announced on April 8, but negotiations have since stalled, pushing oil prices higher.
Oil accounts for 51% of the cost of a gallon of gas, making it the biggest factor in determining prices. As of Tuesday, Brent crude, the international benchmark, was trading around $111 per barrel, while West Texas Intermediate, the U.S. benchmark, was just below $100 per barrel. The Strait of Hormuz remains closed, with no cohesive plan for reopening it, according to Patrick De Haan, a petroleum expert at GasBuddy. "Oil's been slowly recapturing some of what it gave up after the ceasefire was announced," De Haan said.
Regional refinery issues are also contributing to the price spike. A power outage at a Northwest Indiana facility and another snag at an Illinois plant have pushed wholesale gas prices up by 40 to 50 cents, according to De Haan. Residents in Michigan, Wisconsin, Illinois, and Indiana could see particularly large increases at the pump.
White House press secretary Karoline Leavitt told reporters on Monday that President Trump met with his national security team to discuss a proposal from Iran that would allow for the reopening of the Strait of Hormuz but delay nuclear negotiations. However, Leavitt did not confirm whether the administration was considering the proposal.