US pain at the pump worsens after more US-Iran fighting lifts oil prices

U.S. drivers have seen gasoline prices climb again after weeks of steady declines, as renewed fighting between the U.S. and Iran lifted crude oil prices to their biggest weekly rise in eight weeks.

Disruptions in the global refining ‌system and robust U.S. fuel exports further tightened supplies, and average pump prices rose 6 cents this week to $3.88 a gallon on Friday, AAA data showed. It was the biggest weekly increase since mid-May.

Renewed fighting between the U.S. and Iran over the Strait of Hormuz sent energy prices back up sharply this week. With the U.S. summer driving season in full swing, stubbornly high gasoline prices have emerged as ​a political flashpoint for President Donald Trump, whose Republican Party is campaigning to hold thin majorities in the U.S. Congress in November midterm elections.

Trump recently ​accused oil companies of price gouging.

"Gasoline prices have rallied alongside the massive move higher in crude oil after several tankers ⁠in the Strait of Hormuz were attacked," Alex Hodes, director of energy market strategy at brokerage StoneX, said.

Global oil futures benchmark Brent was on track for a ​weekly gain of roughly 5.5% after attacks on several tankers transiting the Strait of Hormuz.

This was followed by tit-for-tat strikes between the U.S. and Iran and Washington's decision to revoke a general license ​permitting the sale of Iranian oil.

Oil flows through the Strait of Hormuz remain well below pre-conflict levels, stoking fears that even minor disruptions could ripple through global fuel markets.

The key waterway carried about 20% of daily global oil and gas supplies before the start of the war on February 28.

Trump has pressed gasoline retailers to cut prices more aggressively. The administration has urged ​the U.S. Justice Department to investigate possible gasoline price gouging and recently introduced a new price-cutting initiative offering discounted gasoline at some locations in Pennsylvania and New ​Jersey.

- Reuters