Working people face the highest gasoline prices since 2022 as the price for a gallon of gasoline in the United States reached $4.18 on Tuesday, a direct consequence of elevated oil prices driven by continued war uncertainty in Iran. Brent crude oil for June delivery climbed 2.1% to $110.50, while July delivery rose 1.9% to $103.67, moving closer to its peak of $119 reached when war worries were at their heights approximately two months ago.
The Trump administration signaled Tuesday it would not accept Iran’s offer to reopen the Strait of Hormuz if the U.S. lifts its blockade on the country. This rejection, which would postpone discussions on the Islamic Republic’s nuclear program, was explicitly ruled out by U.S. Secretary of State Marco Rubio in a Fox News interview Monday. The effective closure of the Strait of Hormuz is keeping oil tankers stuck in the Persian Gulf, preventing them from reaching customers worldwide and contributing to the sustained high prices.
Markets in Asia mostly fell, with Japan’s Nikkei 225 sinking 1% after the Bank of Japan held its key interest rate at 0.75% in a 6-3 vote. The Bank of Japan stated, “There are various risks to the outlook,” and added, “For the time being it is necessary to pay particular attention to the impact of the future course of the situation in the Middle East.” On Wall Street, the S&P 500 fell 0.6% from its latest all-time high, and the Nasdaq composite fell 1.1% from its own record, halting a record-setting rally.
Who Profits
Despite broader market dips, specific segments of capital continued to accumulate wealth. Coca-Cola’s stock rallied 6.1% after the corporation reported stronger profit and revenue for the latest quarter than analysts expected, bolstered by strength from operations in China, the United States, and India. JetBlue Airways, which reported a worse loss for the start of 2026 than analysts expected, saw its stock rise 3.1% after CEO Joanna Geraghty stated that demand from customers was strengthening through the quarter. JetBlue also announced moves to rein in fuel costs, including cutting some flying, a measure that shifts the burden of rising input costs onto labor and service provision.
Who Pays
The rising cost of fuel directly impacts the working class and economically dispossessed. The average price for a gallon of gasoline in the United States reached $4.18 on Tuesday, marking the highest point since 2022. This increase forces households to allocate more of their wages to essential transportation, effectively suppressing real wages. U.S. consumers were reported to be feeling slightly more confident in April, when economists expected a decline, indicating a continued pressure to maintain consumption despite escalating costs.
The State's Role
The state apparatus continues to manage the economic system in ways that protect accumulated wealth and maintain existing power structures. The Federal Reserve is scheduled to announce its latest decision on short-term interest rates tomorrow, with widespread expectation that it will hold the federal funds rate steady and hold off on resuming cuts, thereby managing inflation and financial stability for capital. The Senate Banking Committee is expected to approve President Donald Trump’s nominee, Kevin Warsh, to succeed Fed Chair Jerome Powell, further solidifying the continuity of financial policy. The Bank of Japan's decision to maintain its policy rate, citing "various risks to the outlook" and the "impact of the future course of the situation in the Middle East," underscores how central banks prioritize market stability amidst geopolitical maneuvers that benefit specific industries. The Trump administration's refusal to engage with Iran's proposal to lift the blockade, as articulated by Secretary of State Marco Rubio, directly serves to maintain geopolitical leverage and control over strategic resources, perpetuating the conditions for oil price elevation and subsequent surplus extraction by energy capital.