UpTrajectory Review
Gas prices have been on a downward trend for three weeks, providing some relief to consumers, though they remain above $4 per gallon. This decline follows a tentative agreement between the US and Iran to reopen the crucial Strait of Hormuz, which has been a significant factor in oil price fluctuations. The average price of gas has dropped from a high of $4.56 in May to $4.06 as of Monday morning, according to AAA data.
For small business owners, especially those reliant on transportation, this gradual decrease in gas prices could ease operational costs during the busy summer season. However, it's essential to remain cautious; prices are still significantly higher than pre-conflict levels. Operators should keep an eye on geopolitical developments, as any escalation in tensions could quickly reverse these gains. The current situation underscores the importance of budgeting for fuel costs and exploring alternative transportation options.
“The national average for a gallon of regular has been falling for three straight weeks, delivering some relief to drivers during the busy summer travel season.” — Business Insider
Takeaway: Monitor gas prices closely, as geopolitical events can rapidly change fuel costs.
From the original item — Business Insider:
Sheldon Cooper/SOPA Images/LightRocket via Getty Images
- The average price of gas has fallen for three consecutive weeks, according to AAA data.
- Average prices across the US are still above $4 per gallon as of Monday morning.
- Oil prices slumped after the US and Iran agreed on a tentative deal to reopen the Strait of Hormuz.
Pain at the pump is easing.
The average price of gas across the US has fallen for three consecutive weeks, and continued to fall on Monday, according to AAA data.
“The national average for a gallon of regular has been falling for three straight weeks, delivering some relief to drivers during the busy summer travel season,” AAA said in a statement on Friday.
At the time of AAA’s release, the average price of a gallon of gas nationwide was $4.12, down from a high of $4.56 in May. By Monday morning, the average price had fallen a further 1.5% to $4.06.
Gas prices spiked from less than $3 in February after the start of the US-Iran war. The war crippled global oil supply by leading to the closure of the Strait of Hormuz, a critical Iran-controlled waterway through which about 20% of the world’s oil and liquefied natural gas flows. This, in turn, pushed crude prices sharply higher.
Since then, oil prices have jumped on escalations of the conflict and fallen on any news of a potential peace deal or reopening of the Strait of Hormuz.
AAA
On Monday, oil prices dropped 5% after news that the two countries had agreed to a tentative deal to reopen the strait, with Iranian officials saying the conflict would end on Monday night. The price of Brent crude, the international oil benchmark, has fallen from close to $120 per barrel in late April to around $83 as of 6 a.m. ET Monday.
While the price of fuel is falling in tandem with the broader drop in oil prices, gas is still more than a third more costly than it was before the conflict began.
In some US states, gas prices remain above $5 per gallon. In California, usually the most expensive state for gas, the average price per gallon is $5.74.