Global fuel prices fluctuate amid Middle East conflict and fiscal measures

Fuel prices are experiencing divergent trends across different regions due to geopolitical tensions and government interventions. In Spain, gasoline prices have seen three consecutive weeks of decline, dropping over 8% recently. This trend is supported by government fiscal relief measures designed to mitigate the impact of the conflict in the Middle East, which include specific tax reductions for gasoline and diesel.

In the United States, gasoline prices have reached a national average of approximately $4.27 per gallon, a 43% increase since the outbreak of war in Iran in February. While gasoline has seen a four-week decline, diesel prices have risen. Analysts suggest that prices are unlikely to fall below the $4 per gallon threshold before the November midterm elections due to ongoing disruptions in the Middle East and supply constraints from the Russia-Ukraine war. Brent crude has climbed above $112 a barrel.

In Portugal, forecasts from the Automóvel Club de Portugal indicate a potential decrease in gasoline prices alongside a slight increase in diesel costs for the upcoming week.