Petrol prices in the United States surged to their highest level in four years on Thursday, reaching an average of $4.18 per gallon. The last time prices exceeded $4.15 was in April 2022, following Russia's invasion of Ukraine. Average prices are now $1 higher than a year ago, when they stood at around $3.15 a gallon.
The national average masks significant state-level variation. In oil-producing Texas, petrol costs $3.72 per gallon, while California, which relies on imported fuel, sees an average of $5.96. Benchmark Brent crude traded at $111 a barrel on Tuesday, down from last month's high of $119 but still nearly 60% higher than pre-war levels. West Texas Intermediate crude was near $100 a barrel.
Oil prices rose on Tuesday as negotiations to reopen the Strait of Hormuz remained deadlocked. The strait normally handles a fifth of the world's oil and natural gas. Former President Donald Trump reportedly told advisers he was unhappy with Iran's proposal, which would require the US to end its naval blockade without addressing a nuclear deal. Trump later posted on social media that Iranian leaders described their country as in a 'state of collapse' and sought to reopen the strait 'as soon as possible'.
On the same day, the United Arab Emirates announced it would leave the Opec oil cartel, which has struggled to export through the strait due to the conflict. The move was welcomed by Trump, who has accused Opec of 'ripping off the rest of the world'. Higher oil prices have benefited Western companies like BP, which reported that its profits more than doubled to $3.2bn (£2.4bn) in the first quarter.
