US gas prices have reached their highest recorded level for August, with the national average price of gas at $4.06 per gallon on Monday. This figure is $0.05 higher than the previous week and $1 more expensive than a year ago, according to data from AAA. In California and Hawaii, average prices have reached approximately $5.50 a gallon.
The increase comes as peace talks between the US and Iran have stalled. Both countries missed a 60-day diplomatic deadline on Monday to end the war, failing to agree on Iran’s nuclear program. Energy prices have been elevated since the US-Israel war with Iran began at the end of February, which led to the blocking of the Strait of Hormuz.
Former President Donald Trump reportedly threatened to bomb Oman, a strategic US partner and historical backchannel, if it "gets in the way." Trump also indicated to Fox News on Monday that he was not in a hurry to end the war without Iran meeting his demands.