Oil hits highest levels in weeks, auguring more GOP political pain
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Crude oil futures are at their highest levels in weeks amid the absence of a diplomatic endgame that frees up the Strait of Hormuz.
Why it matters: The soaring costs, combined with a spike in gasoline prices, mean further political pain for President Trump and Republicans.
Driving the news: The global benchmark Brent crude hovered at around $112 a barrel on Tuesday morning, a 4% hike. West Texas Intermediate topped $101 a barrel, an increase of nearly 5%.
- The average cost of a gallon of gas nationwide on Tuesday morning was $4.176, up 6 cents from yesterday and 20 cents from a month ago, per AAA.
- "More hikes are coming and for now, the national average may rise to $4.25/gal-$4.40/gal if nothing changes," GasBuddy analyst Patrick De Haan said in an X post.
Context: "The tense stalemate has no immediate end in sight," Axios' Marc Caputo and Barak Ravid wrote this morning. "So higher energy prices appear certain for months — and a hot war could break out at any moment."
- Several U.S. officials told Axios they're concerned about America getting drawn into a frozen conflict of no war and no deal.
A Reuters/Ipsos poll last week found that 77% of registered voters said Trump bears at least a fair amount of responsibility for the rise in gas prices, which was sparked by his decision to attack Iran.
What they're saying: "A lot of the risk-off sentiment that was driving markets in recent weeks is making way to a bleaker risk-on outlook," Rabobank analyst Florence Schmit said via Bloomberg.
Editor's note: This story has been updated with comment from GasBuddy's Patrick De Haan.
