• U.S. gasoline prices rose to $4.11 per gallon, marking the fifth straight daily increase, according to AAA.
  • Oil markets remain firm as Iran signals the Strait of Hormuz will not fully reopen, keeping supply fears alive.
  • Prices stay below the recent $4.17 peak but are climbing again amid persistent geopolitical risks.

Prices Edge Higher on Supply Fears

U.S. gasoline prices edged up to $4.11 a gallon on Thursday, extending a five-day streak of gains. The move comes as oil markets firm on renewed geopolitical tensions, with Iran signaling that the Strait of Hormuz will not fully reopen to traffic, according to people familiar with the matter. Prices remain just below the recent peak of $4.17 reached after Donald Trump announced a ceasefire with Iran, but the relief proved short-lived.

“The market is re-pricing the risk premium as the Strait of Hormuz remains a choke point,” said an oil analyst at a major consulting firm. “Without a clear resolution, we could see further upside.”

The national average has risen 12 cents over the past week, driven by higher crude costs and tightening domestic gasoline supply. West Coast prices remain elevated, with California averaging $5.20 a gallon due to logistics constraints and local demand.

Iran Maintains Pressure

Iran’s signals that the Strait of Hormuz will not fully reopen have kept pressure on global energy prices. The strait handles about 20% of the world’s oil shipments, and any disruption risks sending crude prices higher. Brent crude traded above $98 a barrel on Thursday, while WTI hovered near $94.

“Iran is using the strait as leverage,” said a former U.S. energy official. “Even a partial closure can have outsized effects on prices.”

Efforts to negotiate a broader reopening have stalled, according to diplomats briefed on the talks. Without a deal, analysts warn that gasoline prices could test the $4.30 level in the coming weeks as summer driving season approaches.

Implications for Consumers and Economy

Higher gas prices are squeezing household budgets, with the average driver spending about $60 more per month than a year ago. Transportation costs are rising for businesses, fueling concerns about inflation. The Federal Reserve is monitoring the situation, but officials have signaled no immediate policy response.

“Energy prices are a wildcard for the inflation outlook,” said a fixed-income strategist. “If they stay elevated, it could delay any rate cuts.”

Correction: An earlier version of this article misstated the previous peak price. It is $4.17, not $4.15.