US petrol prices top $4 per gallon for second straight week

• US gasoline prices rose to an average of $4.00 per gallon for a second straight week.
• Middle East tensions and threats to regional shipping routes pushed oil prices higher.
• Brent crude and WTI reached their highest levels in weeks before easing slightly.
• Rising energy costs have renewed concerns about inflation and potential Federal Reserve rate hikes.

American consumers are facing renewed pressure at the pump as national average petrol prices breached the $4.00 per gallon mark.

The price increase marks the second straight week of rising fuel costs, driven by the re-escalation in military tensions between the United States and Iran that threatens critical energy infrastructure and maritime transit corridors.

According to daily tracking data from the American Automobile Association (AAA), the national average price for a gallon of regular petrol rose to $4.00 (up from $3.87 just a week prior).

The price surge follows a breakdown in ceasefire agreements between Washington and Tehran, raising market anxiety regarding oil tanker safety across the Strait of Hormuz.

Benchmark crude futures surged over recent trading sessions as energy traders calculated potential supply bottlenecks.

International benchmark Brent crude reached $91.42 per barrel before pulling back slightly to $88.04, while US West Texas Intermediate (WTI) crude climbed to its highest level since mid-June at $85.39 per barrel before settling near $82.29.

Market volatility worsened after Iran's regional ally, Yemen’s Houthis, to announce a formal naval blockade targeting maritime traffic heading to Saudi Arabia.

Houthi leadership warned that attempts to close off the Red Sea shipping route would intensify if US military strikes on Iranian energy assets continue.

The recent price spike directly reverses a brief period of relief for American households.

Data released last week by the Labor Department’s Bureau of Labor Statistics showed the Consumer Price Index (CPI) fell 0.4 percent on a monthly basis, largely fueled by a significant 9.5 percent drop in petrol prices.

However, analysts note that the inflation report reflected a temporary window of calm before military engagements resumed.

The sudden rebound in fuel costs threatens to reignite broader consumer inflation.

Commenting on the market reaction, David Meger, director of metals trading at High Ridge Futures, highlighted the broader macroeconomic risks facing central bankers.

"Higher energy prices remain in focus as a re-escalation in the Middle East tensions adds to concerns that last week's cooler-than-expected inflationary data may not be enough to deter the Fed from raising interest rates later this year," Meger told Reuters.