On the morning of Aug. 9, as global oil prices surge, a ticker in the dealing room at Hana Bank in Jung-gu, Seoul, displays futures prices for West Texas Intermediate (WTI), Brent, and Dubai crude. After U.S. President Donald Trump says the tentative agreement is "over" alongside additional strikes on Iran, fears over Middle East crude supply intensify and push international oil prices higher. /Courtesy of News1

As armed clashes between the United States and Iran flare again, the average U.S. gasoline price has climbed back above $4 per gallon. Heightened tensions around the Strait of Hormuz have raised concerns about disruptions to global crude supply.

According to the American Automobile Association (AAA) on the 20th (local time), the average U.S. gasoline price stood at $4.003 per gallon (about 1,570 won per liter) as of the day.

U.S. gasoline prices were below $3 per gallon at the end of February, just before the U.S.-Iran war broke out. They have risen on the back of the war's fallout, reaching the $4.5-per-gallon range in May.

After the two countries signed a memorandum of understanding (MOU) to end the war, prices fell to the $3.7-per-gallon range early this month, but they have turned upward again as clashes recently reintensified.

Diesel prices also topped the $5 mark at $5.108 per gallon on the day.

In the market, concerns have emerged that military clashes between the United States and Iran could lead to logistics disruptions in the Strait of Hormuz, a key conduit for global crude shipments.

This is because after Iran moved to blockade the Strait of Hormuz, the United States conducted airstrikes on Iran, and Iran struck back at U.S. bases in the Middle East, effectively collapsing the countries' cease-fire deal. Adding to this, Yemen's pro-Iran Houthi rebels on the 20th declared a maritime blockade of Saudi Arabia, further stoking anxiety over crude supply.

Behind higher petroleum product prices are not only crude supply issues but also problems with refinery operations.

Martin Latz, a Morgan Stanley analyst, said, "For now, there are not enough refineries operating to convert secured crude into products."

Economists warn that if gasoline and diesel price increases persist, they could affect transportation costs and the broader supply chain, adding to inflationary pressures and eroding household spending power.

There is also an outlook that if high oil prices persist, they could become a political burden for Republicans ahead of the U.S. midterm elections in Nov.

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