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US Gas Prices Cross Politically Sensitive $4 Level Closely Watched By Trump
The U.S. national average for a gallon of regular 87-octane gasoline has climbed back above the politically sensitive $4 threshold as U.S. military forces and Tehran enter a ninth day of tit-for-tat strikes. This level is significant because it is where fuel costs begin to alter spending and driving behavior among working-poor households, while also weighing more broadly on consumer sentiment, making it a key pressure point closely watched by the Trump administration ahead of the midterm election cycle.
Regular unleaded gasoline climbed above $4 a gallon on Monday, according to new data from the American Automobile Association, ending roughly one month below the politically sensitive threshold after the interim peace deal that temporarily eased Gulf area tensions.
With the U.S.-Iran conflict now caught in an escalation spiral and domestic retail fuel prices rising sharply, pressure on the Trump administration to pursue a diplomatic off-ramp is likely to intensify.
Brent crude futures jumped above $90 a barrel earlier - the highest since early June - but faded in European trading. There were reports earlier that Iran targeted tankers in the Hormuz chokepoint and a Kuwaiti oil facility was attacked.
Let's not forget: last week, the writing was on the wall.
Readers may recall that we detailed extensively how consumer behavior shifted when gas prices were above $4:
- Here's What Happened Inside Gas Stations When Gas Hit $4
- Here's What Happened Inside Convenience Stores When Gas Hit $4
- Energy Drinks Become Latest Casualty As Fuel Shock Shifts Consumer Behavior
We suggest readers revisit Daan Struyven, Goldman's leading commodity expert, on why gas prices are likely to remain elevated (read the note here).
Tyler Durden Mon, 07/20/2026 - 11:20Is There a New Episode of ‘Last Week Tonight With John Oliver’ Tonight? When Does John Oliver Return?
BookTok is making these seemingly boring old books surprisingly popular
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‘RHOSLC’ star Angie Katsanevas and husband Shawn Trujillo separate after 27 years of marriage
‘RHOSLC’ star Angie Katsanevas and husband Shawn Trujillo separate after 27 years of marriage
400+ Ukrainian Drones Launched On Moscow In One Of Biggest Attack Waves To Date
The Russian capital has been hit with a massive drone wave from Ukraine, which injured at least ten people - including three Chinese citizens - local authorities say.
Moscow Mayor Sergei Sobyanin has stated that more than 400 UAVs were launched toward Moscow and its suburbs overnight in one of the largest single raids since the war's start.
Reuters: Smoke billows after Ukrainian drone attacks in Podolsk, Moscow Region.He described that most of the inbound drones were intercepted far from the capital, and that another 85 were downed as they got closer, but emerging images suggest there were some big strikes that landed.
Russia's RT provided the following details, noting that the biggest impact was felt in the Moscow suburbs:
Two women were injured in Podolsk, while an 11-year-old girl in the Odintsovo district was diagnosed with an acute stress reaction but did not require hospitalization.
The main consequences of the raid were recorded in Podolsk, Domodedovo, and the Odintsovo urban district, Vorobyov said. Falling drones damaged several private homes and civilian infrastructure facilities and sparked multiple fires, he added.
In Odintsovo, a car and a private home were damaged, although no injuries were reported. In Podolsk, fires broke out and several civilian infrastructure sites were damaged, along with a private home in the village of Maloye Tolbino.
Regions bordering Ukraine also came under heavy overnight attack from Ukraine, including Belgorod, Bryansk and Kursk. These oblasts have frequently been targeted throughout the years-long war. Nationwide, at least four people were killed and dozens more injured in the large-scale drone assault.
Ukraine's President Zelensky has long touted the effectiveness of the drone war on Russian oil depots and energy facilities, but by all appearances this fresh drone attack targeted civilian areas as well as general manufacturing centers. According to more from Russian media:
The same wave of strikes hit two logistics centers operated by the Russian online retailer Wildberries in Kotovsk, Tambov Region, and Elektrostal, near Moscow. The attacks killed eight people and injured dozens more, according to regional officials.
Wildberries, often called the Russian version of Amazon, is one of the country’s most popular online retailers. Kiev confirmed that it had deliberately targeted the warehouses, claiming they stored components used in drone and navigation equipment.
Crimea was also once again heavily targeted, with the Russian Defense Ministry saying it intercepted many drones over the peninsula between Sunday night and Monday.
Reuters: damage recorded in Podolsk & other areas of Moscow region...
Russian officials said air defenses repelled a drone attack on Moscow region, with 400 drones reportedly launched overnight and damage recorded in Podolsk and other areas https://t.co/dfaQPHMfFT pic.twitter.com/xmhFivKZlX
— Reuters (@Reuters) July 20, 2026It seems this was Zelensky's 'answer' to the massive Russian ballistic missile attacks on Kiev of the last days.
While the Kremlin over the weekend boasted of new ground advances along the front lines, the war has been focused in the air of late. As for the Ukrainian capital, emergency crews have been scrambling on an almost nightly basis.
Concerning a weekend attack, "The Kyiv government said firefighters were responding to blazes in five different districts after the attack, one of the biggest in recent weeks, hit residential buildings, office and industrial sites, a dormitory and vehicles," The Independent described.
Tyler Durden Mon, 07/20/2026 - 11:00Which Mets will be targeted by rival GMs? | Presented By Your Local Ford Dealers
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My fiancé died a month before our wedding, so I went on our honeymoon alone — and learned these valuable lessons
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Houthis Announce Blockade On Saudi Shipping, Threaten Drone & Missile Attacks On Kingdom
Yemen's Houthi rebels have announced they are imposing a new maritime embargo against Saudi Arabia in response for a recent attack on Sanaa Airport, and after years of the kingdom leading a blockade of Houthi-controlled Yemeni ports.
A military statement by Houthi spokesman Yahya Saree said the maritime ban on all Saudi shipping will be effective immediately in what he declared as an "equation of 'an eye for an eye.'"
via Middle East EyeHowever, details of what this 'embargo' will look like, in terms of where or what chokepoints the Houthis might seek to blockade were not given.
Last week the Saudi-led coalition in Yemen attacked the Houthi-controlled Sanaa International Airport, threatening a fragile truce that has been in place since 2022. Saudi jets had prevented an Iranian passenger plane from landing there, after the US-Saudi recognized Yemeni government warned against any Iranian planes entering the divided country's airspace.
Within days of that incident, the Houthis reportedly sent missiles on Saudi Arabia - which was a first after years of relative peace. In addition to unveiling the anti-Saudi embargo, the Houthis spokesman warned that if the Saudi siege on Yemen is not lifted, then Houthi armed forces will move towards a full-scale war.
Saree declared, "if Saudi Arabia turns to all-out aggression against Yemen, all of Saudi Arabia's energy facilities and its vital facilities will be targets for missiles and drones."
He described that the blockade of Sanaa airport "is unacceptable and cannot be tolerated" - following the Iran airline incident. Saree vowed to retaliate "to the blockade with a blockade and to respond to all escalation with escalation."
July 13: Yemen's internationally recognized, Saudi-backed government says its forces targeted Sanaa Airport, under Houthi control, to prevent an Iranian aircraft from landing there...
ایرانی طیارے کی لینڈنگ روکنے کے لیے یمنی حکومت کی صنعا ہوائی اڈے پر بمباری
یمن کی بین الاقوامی طور پر تسلیم شدہ حکومت کا کہنا ہے کہ اس کی فورسز نے حوثیوں کے زیرِ کنٹرول صنعا ایئرپورٹ کو نشانہ بنایا تاکہ ایک ایرانی طیارے کو وہاں لینڈ کرنے سے روکا جا سکے۔#Yemen #Iran… pic.twitter.com/N8kugrBrn1
"The Yemeni Armed Forces affirm their complete readiness for all options and any foolish act committed by the reckless Saudi enemy," the statement continued.
"We call upon the people of our great nation to continue the general mobilization and general call to arms, and to be fully prepared for all scenarios and developments, and to support the fronts with fighters."
The "internationally recognized" Yemeni government has long been propped up by Saudi Arabia, the UAE, and the US, after a lengthy half-decade long UAE/Saudi/US coalition air war failed to dislodge Houthi power. The pro-Saudi government operates out of Aden in southern Yemen, after the country's president fled there a decade ago.
Earlier this month there had been an initial attempted Saudi warplane intercept of an Iranian civilian airliner, which was reportedly carrying Yemenis who had been stranded in Iran back to their home country.
BREAKING: Houthis of Yemen announce a a "maritime embargo" against Saudi Arabia, "effective immediately."
Saudi Arabia has until now exported ~4.5m b/d from Yanbu in the Red Sea, most of it heading South throughout the Bab al-Mandab Strait between Yemen and Djibouti-Eritrea pic.twitter.com/c96Apzh9As
The Houthis at the time of the prior incident said it was "breaking the Saudi-American siege on our people and expelling the occupiers."
As we featured previously, since 2015 Saudi Arabia has imposed a blockade on Yemen's land, sea, and air ports, severely restricting vital commercial and humanitarian imports, including fuel and food.
Tyler Durden Mon, 07/20/2026 - 10:25Texas PUC Approves "Ride-Through" Rules For Data Centers
By Diana DiGangi of UtilityDive,
The Texas Public Utility Commission on Thursday unanimously approved rules that will require large computational loads, like data centers and crypto-mining facilities, within the Electric Reliability Council of Texas footprint to stay stable and connected to the grid through disruptions.
Modern computational loads, Kenteel Engineering said in a June blog, are “engineered to protect extremely sensitive and expensive equipment,” and during a voltage dip are programmed to disconnect or enter momentary cessation.
However, this presents a reliability problem, Kenteel Engineering said, as when “several hundred — or several thousand — megawatts of computational load all detect the same sag and drop simultaneously, the grid experiences a sudden, large loss of demand.”
“As LCLs increase on the ERCOT System, similar events would be expected to increase in magnitude and frequency, leading to frequency instability and other reliability problems absent frequency and voltage ride-through requirements,” the Texas PUC rules state.
The rules don’t immediately penalize facilities that fail to ride through a qualifying event, Kenteel Engineering noted, but instead put them “on the clock” to investigate and report the root cause within 90 days of ERCOT’s request, “develop a corrective plan within 90 days of completing that investigation, and implement the approved plan within 180 days unless ERCOT grants more time.”
“Overriding all of that, if ERCOT judges that continued operation poses an imminent risk to local or system reliability, it can order the [large electric load] — and keep it disconnected — until the Customer demonstrates compliance to ERCOT’s satisfaction,” Kenteel Engineering said.
In comments, the Data Center Coalition argued that the PUC lacks the statutory authority to “impose the binding and ongoing operational requirements contained in [the rules] directly on retail customers — a category of entity that the Legislature deliberately excluded from ERCOT’s authority.”
Texas Industrial Energy Consumers made similar comments, writing, “Unlike Market Participants who must agree to comply with and be bound by all ERCOT Protocols as a condition of participating in the wholesale market, pure retail loads have made no such commitment and have no such obligation.”
TIEC also argued that ERCOT lacks the expertise to “develop reasonable operational requirements for complex, costly manufacturing equipment. It is completely inappropriate to give ERCOT the ability to directly regulate businesses who are not participating in the wholesale market and are not otherwise regulated entities.”
In a staff memo from the PUC’s R. Floyd Walker, senior counsel with the commission’s market analysis division, Walker dismissed concerns over the PUC’s authority. Those commenters “seem to be working under the assumption that explicitly statutory authority is required,” he wrote. “Staff respectfully submits that delegated authority is sufficient.”
“There is no debate that voltage and frequency excursions on the transmission network create reliability concerns, which increase with the interconnection of each new large computational load,” Walker said. “Accordingly, if approved by the Commission, the provisions of [the rules] would be within ERCOT’s authority by virtue of that approval.”
Comments from the Texas Blockchain Council argued that proposed mitigation approaches for LCLs, such as the installation of dedicated battery storage, “are neither practical nor economical at scale.”
“While battery solutions have been suggested, we are not aware of any that have been successfully tested or deployed at the scale required for [LCLs],” the group wrote. “Even if pursued, mandating dedicated batteries for each facility would be unlikely to fully resolve the underlying technical challenges and would impose substantial costs, currently estimated at more than $1.6 million per MW, making such an approach economically prohibitive for most operations.”
ERCOT staff approved of the rules, writing in a market impact statement that they provide “necessary requirements to reduce the reliability risk posed by LCLs unexpectedly tripping or transferring to backup generation when frequency and voltage excursions within a specified range occur.”
In official comments, ERCOT wrote that LCL loss wasn’t a hypothetical, and ERCOT “has experienced 28 events involving LCL trips of at least 100 MW due to voltage and frequency excursions since the beginning of 2023. This risk will increase exponentially with the significant growth of LCLs expected in the ERCOT Region.”
Developers have requested studies for more than 438 GW of large load projects within ERCOT’s footprint, and “even if only a small fraction of these projects materialize, this will significantly increase the risk that cascading outages could occur due to LCL failures to ride through typical voltage or frequency disturbances,” ERCOT said.
Tyler Durden Mon, 07/20/2026 - 10:10