Oil prices reached their highest level since the Iran war began overnight, with Brent crude trading at $126 per barrel before pulling back on Thursday morning. This increase is expected to continue to drive U.S. gasoline prices higher. The market is reacting to a potential stalemate over the Strait of Hormuz, with traders also considering potential military escalation. The price of Brent crude dropped to about $114 per barrel as of 8 a.m. Eastern. The average gasoline price was at $4.30 per gallon on Thursday, a significant increase from the previous day.