Iran President Masoud Pezeshkian reportedly said his country in "full-scale war" with United States of America. Iran's Revolutionary Guards said on Monday they had struck U.S. military assets across the Middle East after another night of U.S. bombardment of Iranian cities, part of a cycle of attacks that has all but wrecked an interim ceasefire agreement. Oil prices briefly jumped above $90 a barrel after renewed disruption to shipping through the Strait of Hormuz, while U.S. President Donald Trump defended the latest strikes as retaliation for American military deaths, despite mounting political pressure at home from rising gasoline prices.
The conflict also escalated with attacks on desalination facilities, raising the prospect of water shortages across parts of the Gulf and opening a new front in a war that is increasingly threatening civilian infrastructure. Yet even as both sides traded strikes, Tehran and Washington separately signalled they had not ruled out a return to negotiations.
President Trump said the latest U.S. strikes were carried out "in honor of the ... great patriots", referring to as many as three U.S. service members killed in recent Iranian attacks.
Gas, Oil Prices in USA
US gas prices jumped to an average of USD 4 a gallon again Monday as the US and Iran launched more attacks. According to motor club federation AAA, the national average for a gallon of regular gasoline is now back to USD 4. The average price a year ago was USD 3.14 a gallon.
The price is a national average, meaning drivers in some states have been paying well over USD 4 a gallon for a while now, while others pay less. Prices vary between states due to factors ranging from nearby supply to differing tax rates.
People around the world are also dealing with high gas prices as a result of the war.
Gas prices first went over USD 4 a gallon on average at the end of March. They dipped below that in mid-June and continued to fall as crude oil prices eased when the US and Iran reached an interim deal. Even then, President Donald Trump expressed frustration that gas prices weren't falling as quickly as oil prices.
Affordability is likely to be a key issue for voters in the US midterm elections, and higher gas and oil prices can help push up prices for groceries and other goods.
Oil prices have climbed again in recent days as the US and Iran move closer to resuming an all-out war. Brent crude, the international standard, rose 3.2 per cent to USD 90.95 per barrel Monday and benchmark US crude climbed 2.8 per cent to USD 84.04 per barrel.
