Ceasefire-linked drop in gas prices idles, AAA figures show

The decline in gas prices during the Iran war’s ceasefire seemed to stall out Thursday as the national cost at the pump ticked up.

The average price of a gallon of gas stood at $4.03, according to the AAA motor club.

That’s only a 1-cent increase from the day before, though it ends a steady drop that coincided with President Trump’s decision to enter a ceasefire earlier this month.

A week ago, the average price was $4.09 per gallon.

Gasoline is refined from crude oil, the price of which has gone up and down with twists in the Middle East conflict.

Brent crude, an international benchmark, rose again to over $100 per barrel on Thursday amid tensions in the Strait of Hormuz.

Mr. Trump is imposing a blockade of Iranian ports, hoping to force Tehran to the negotiating table.

Iran is maintaining a tight grip on Hormuz, a critical waterway for oil traffic, by attacking passing ships or charging tolls in some cases.

The price of gas is up about a dollar from the roughly $3-per-gallon gas that Americans saw at the start of the war on Feb. 28.

Mr. Trump has characterized the energy shocks as short-term pain for the long-term gain of preventing Iran from obtaining a nuclear weapon.

He’s surprised that prices aren’t even higher, saying he thought oil would have soared to $200 per barrel from the war.

More than half of Americans think the increase in gas prices will last six months or longer, according to a CNBC All-America Economic Survey released Thursday.

The survey said 6 in 10 respondents reduced spending on things such as eating out, movies and concerts, while over half plan to travel less.

Four in 10 people are spending less on items such as groceries and medical care, the survey said.

The survey was conducted from April 15-19 and has a margin of error of 3.1%.