Gasoline prices in the United States have been rising again as tensions in the Middle East disrupt global oil supplies. According to data from AAA, the average price of gasoline in the US climbed to $3.54 per gallon on Tuesday. That is about 19% higher since the United States and Israel attacked Iran on February 28, triggering a conflict that has affected oil production, storage and shipping across the Persian Gulf.
Oil prices have also surged. In financial markets, crude oil prices have risen about 24% since the conflict began, making fuel more expensive.
This shows how strongly the world still depends on oil from the Gulf region - and how global energy markets are connected.
Also Read:Trump Announces First New US Oil Refinery in 50 Years — Reliance Signs 20-Year Deal
The biggest factor in gasoline prices is the cost of crude oil.
According to the US Energy Information Administration, crude oil usually makes up about half the price of a gallon of gasoline.
The rest of the price comes from:
Gas station owners can adjust prices slightly, but usually only by a few cents per gallon.
Oil prices are mostly decided by global supply and demand. This simply means the balance between how much oil the world produces and how much people want to buy.
If supply falls for example because of war, prices rise everywhere.
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