In California, the average gas price has risen to nearly $6 per gallon.
The national average price of regular gasoline was $4.24 per gallon on Thursday, down 18 cents since last week and registering the second consecutive weekly decline in prices.
“Pump prices are cooling off as the price of crude oil remains below $100 per barrel,” the American Automobile Association (AAA) said in a June 4 statement. “Drivers will take all the relief they can get as they embark on summer road trips. But uncertainty lingers over when the Strait of Hormuz will fully reopen and resume traffic. That unknown means oil prices will likely not decrease dramatically as summertime gasoline demand starts going up.”
Gasoline prices are down from $4.42 per gallon a week back and $4.57 a year back. Six states had average gas prices in excess of $5—California, Washington, Hawaii, Alaska, Oregon, and Nevada—with California having the highest price at $5.97 per gallon, according to AAA.
Brent crude oil futures were trading at $95.41 per barrel as of 9:50 p.m. ET, down from the May 15 peak of $109.75. However, current prices are still up by more than $20 per barrel compared to the roughly $72 closing price on Feb. 27, a day prior to when the U.S.–Iran war broke out.
Iran has repeatedly attacked and threatened commercial ships in the critical Strait of Hormuz since the war began. The strait is a shipping waterway located south of Iran through which more than one-fifth of global seaborne oil trade takes place. The tense situation has disrupted shipments via the strait, keeping oil and gasoline prices elevated.
While prices have cooled off in recent days, the unresolved conflict conditions surrounding Hormuz pose a risk that oil and gasoline prices could shoot up once more if the war intensifies.
On Tuesday, the U.S. Central Command said that Iran launched ballistic missiles towards Bahrain and Kuwait, which were intercepted. Three drones launched by Tehran toward civilian mariners transiting regional waters were also shot down. Just before dawn on Wednesday, Iran attacked the Kuwait International Airport, killing one individual and resulting in the suspension of flights.
