US gas prices rose to their highest level in four years on Thursday, reaching an average $4.18 a gallon at the pump as US-Israeli peace talks with Iran remain at a standstill.
The last time average US gas prices breached $4.15 a gallon was in April 2022, when oil prices soared shortly after Russia invaded Ukraine. Average gas prices are now $1 higher than just a year ago, when they were closer to $3.15 a gallon.
Average gas prices vary heavily by states, with oil-producing states seeing averages as much as $2 a gallon lower than states that import gas. In Texas, gas is $3.72 a gallon while California sees an average of $5.96 a gallon.
By Tuesday morning, Brent crude, the global benchmark, hit $111 a barrel, lower than its high of $119 a barrel that was seen last month but nearly 60% higher than averages seen before the start of the war. WTI crude, the US benchmark, was near $100 a barrel on Tuesday morning.
Oil prices went up on Tuesday after news that negotiators remain gridlocked over talks to reopen the strait of Hormuz, where a fifth of the world’s oil and natural gas would typically pass through.
Donald Trump reportedly told advisers on Monday he is not happy with Iran’s proposal to reopen the strait, which would require the US to end its own naval blockade of the strait and does not address a nuclear deal.
On Tuesday, Trump said on social media that Iranian leaders told him the country was in a “state of collapse” and said they want to open the strait of Hormuz “as soon as possible, as they try to figure out their leadership situation (which I believe they will be able to do!)”.
Also on Tuesday, the United Arab Emirates announced it would leave the Opec oil cartel, which has been struggling to clear exports through the strait because of the war. The news is a big win for Trump, who has accused the group of “ripping off the rest of the world” by colluding to raise oil prices.
Higher oil prices have been a boon for western oil companies, which have found themselves with an advantage over their competitors in the Middle East that have been affected by the war. BP on Tuesday said that its profits had more than doubled in the first quarter of the year, reaching $3.2bn (£2.4bn).
