US Gas Prices Hit Four-Year High
US gas prices rose to $4.18 a gallon on Thursday. This is the highest level in four years.
Prices jumped 1.6% on Tuesday. That was the biggest one-day rise in over a month.
Gas is now $1 more per gallon than a year ago. Oil prices surged because talks on the Strait of Hormuz are stuck.
The strait moves about 20 million barrels of oil each day. Shipping through it has nearly stopped.
The last time prices were this high was April 2022. That was after Russia invaded Ukraine.
Klear Note — The Strait of Hormuz is a narrow waterway between Iran and Oman. It carries about one-third of the world's oil shipments. When shipping stops there, oil becomes scarce and prices rise.
Key Terms 2
- Strait of Hormuz Narrow sea passage carrying about 20% of the world's oil supply
- gridlocked Talks are completely stuck with no progress being made