-- US gasoline tops $6 in California as Iran war fuels price surge, with Midwest levels hitting $4.67 and diesel nearing $7.50, according to a Bloomberg analysis on Thursday.
Fuel costs across the US are climbing sharply after weeks of increases in Asia and Europe, as conflict-linked energy shocks continue to ripple through global markets, the analysis said.
California recorded average regular gasoline above $6 per gallon on Wednesday, marking the highest level since October 2023, the analysis added, citing data from the American Automobile Association.
Illinois gasoline prices reached $4.67 per gallon, more than $1 higher than last year's average, while Indiana, Michigan, and Ohio reported similar price spikes across regional markets, the analysis said.
Diesel prices surged alongside gasoline, climbing to nearly $7.50 in California and holding in the mid-$5 range across the Midwest, according to the analysis.
US gasoline futures rose to their highest level in nearly four years, the analysis showed.
The Iran conflict has entered its ninth week, and traders are increasingly worried about a prolonged disruption or blockade in the Strait of Hormuz, a key oil transit route, the analysis said.
Rising fuel prices are emerging as a political challenge for Republicans ahead of midterm elections, especially in Senate races in Michigan and Ohio, the analysis added.
California's price surge is adding pressure on Governor Gavin Newsom, who may pursue a 2028 presidential run, the analysis said.
Operational issues at Midwest refineries are adding to supply strain, including a shutdown of a key processing unit at Exxon Mobil's Joliet facility, Wood Mackenzie data cited by the analysis showed.
A separate power disruption at BP's Whiting refinery in Indiana added further uncertainty, even as facilities remained online, contributing to ongoing volatility in regional fuel pricing, the analysis said.