President Trump asked Americans on August 14 to accept higher gasoline prices as the cost of restraining Iran’s nuclear program. Average US gasoline prices have reached approximately $4.08 per gallon, a roughly 29% increase compared to last year. The Strait of Hormuz, through which roughly a fifth of the world’s oil supply typically flows, is now effectively blocked to crude shipments. Analysts estimate the broader economic fallout from the conflict could reach tens to hundreds of billions of dollars in additional household costs. The full impact of the current oil shock may not register in official inflation data until early fall.
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