US gas prices surged to their highest level in four years on Thursday, averaging $4.18 a gallon, as negotiations to reopen the Strait of Hormuz remain deadlocked. This marks a $1 increase from a year ago, when prices were around $3.15 a gallon.
The last time average prices exceeded $4.15 was in April 2022, following Russia's invasion of Ukraine. Prices vary significantly by state, from $3.72 in Texas to $5.96 in California.
Brent crude hit $111 a barrel on Tuesday, down from last month's high of $119 but nearly 60% above pre-war levels. US benchmark WTI crude hovered near $100 a barrel. The price rise follows news that talks on reopening the Strait of Hormuz, through which a fifth of global oil and gas passes, are gridlocked.
Former President Donald Trump reportedly expressed dissatisfaction with Iran's proposal, which would require the US to end its naval blockade without addressing a nuclear deal. Trump claimed on social media that Iranian leaders described their country as being in a 'state of collapse' and eager to reopen the strait.
Meanwhile, the United Arab Emirates announced it would leave OPEC, a boost for Trump who has accused the group of colluding to raise prices. Higher oil prices have benefited Western companies like BP, which reported first-quarter profits of $3.2bn, more than double the previous year.
