Oil prices continued to rise on Monday amid escalating strikes between the U.S. and Iran on vessels in the Strait of Hormuz and nearby regions.
Brent crude futures increased by 79 cents, or 0.82%, reaching $97.07 a barrel by 0512 GMT. Meanwhile, U.S. West Texas Intermediate crude rose by 80 cents, or 0.87%, to $92.28 a barrel.
The increase occurred despite gas prices typically declining by Labor Day weekend.
Gas prices typically follow a seasonal pattern: they are lowest in winter, when driving decreases, then gradually rise in spring and summer as warmer temperatures, longer days, and increased driving occur.
However, the conflict in Iran has pushed global oil prices higher for several months. Additionally, Russia’s refinery capacity has decreased due to ongoing attacks related to its war with Ukraine.
The price rise follows Brent’s 7.8% gain last week, while WTI gained nearly 10%. The national average price of diesel hit $5.85 per gallon on Sept. 3, surpassing the previous high of $5.82 per gallon in June 2022.
Diesel has skyrocketed more than 60% so far this year.
According to Brown University’s Climate Solutions Lab, Americans have spent an additional $97 billion on gas and diesel since the Iran war began. This totals over $740 for each US household.
By CEO NA Editorial Staff
