This month’s US gas prices are so far the highest ever recorded for August, as US-Iran peace talks have stalled and Donald Trump issued new threats against Oman. The national average gas price was $4.06 per gallon on Monday, according to AAA data, up $0.05 from last week and $1 more expensive than a year ago. In California and Hawaii, averages are around $5.50 a gallon. Energy prices have been high since the US-Israel war with Iran began in late February and the Strait of Hormuz, a crucial waterway through which a fifth of oil passes, was blocked. Brent crude, the global oil benchmark, hit $112 a barrel in March, a high not seen since 2022. While prices have since dropped to around $85 a barrel, they are still around 30% higher than a year ago. Gas prices fell in recent months after the United States and Iran reached brief peace deals, but have begun to rise again as peace talks faltered. On Monday, the United States and Iran missed their 60-day diplomatic deadline to end the war as both countries failed to reach a deal on Iran’s nuclear program. Trump threatened on Monday to bomb Oman, a key strategic partner for the United States that has historically served as a back channel between the two countries, if it “gets in the way.” Trump also indicated that he was not pushing for the war to end without Iran meeting his demands: “I don’t have a timetable. I’m in no rush,” he told Fox News on Monday. households: The Joint Congressional Economic Committee, a bipartisan panel that obtained data from AAA, reported in July. Although headline inflation fell in July, driven by a cooling in energy prices, consumer prices remain high compared to last year. Half of Americans surveyed by Harris Poll in May reported struggling with the cost of food and gas, and an overwhelming majority said they believed the United States was in an affordability crisis. Meanwhile, oil companies have racked up windfall profits in the midst of the war. Eight of the biggest oil companies – Aramco, BP, Shell, Equinor, TotalEnergies, Eni, Chevron and ExxonMobil – racked up $90bn (£67bn) in profits in the three-month period of March and June, the first full financial quarter since the war began. That equates to about $700,000 in profit per minute during the spring quarter.
