The rise in US fuel prices amid the Iran war is increasing pressure on drivers and Trump – National
US gasoline prices jumped above an average of $4 a gallon for the first time since 2022 on Tuesday, as the war in Iran continued to push up fuel prices around the world.
According to AAA, the national average for a gallon of regular gasoline is now $4.02 — a dollar more than it was before the war began in Feb. 28. That’s the biggest monthly jump the car club has seen on record. And the last time American drivers collectively paid this much at the pump was nearly four years ago, following Russia’s invasion of Ukraine.
The price is a national average, meaning drivers in some states have been paying more than $4 a gallon for a while now. Prices vary between states due to factors ranging from proximity to different tax rates.
Since the US and Israel launched a war against Iran last month, the cost of crude oil – the main ingredient in gasoline – has risen and fluctuated rapidly. That’s because the conflict has caused deep supply chain disruptions and cuts to major oil producers across the Middle East. Both Brent crude, the international standard, and benchmark US crude will now cost more than $100 per barrel, up from around $70 before the war.
US President Donald Trump shrugged off higher prices when asked by reporters in the Oval Office later on Tuesday, suggesting that Americans worried about gas costs “feel a lot safer” because of his actions in Iran.
“All I have to do is leave Iran, and we will do that very soon, and they will come down,” he said of fuel prices.
Motorists around the world are facing higher gas costs. For example, in Paris, gas is 2.34 euros per liter ($2.68), which is $10.27 per liter.
More expensive gas may drag down the economy and raise other prices
The higher electricity prices come as many households continue to struggle with the wider cost of living. And with drivers paying more to cover necessities like gas, or utility bills affected by rising fuel costs, many may be forced to cut back on their budgets in other areas. That threatens to have far-reaching consequences for the overall economy.
Before starting the war, Trump bragged about keeping gas prices low. Consumer prices and the cost of living have already become indicators in this midterm election year. A recent AP-NORC poll found that 45% of American adults are “extremely” or “very” concerned about being able to afford gas in the next few months, up from 30% shortly after Trump won the 2024 presidential election.
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Without visiting the pump, analysts say higher fuel costs will hit stores, which must be refilled regularly and could see price increases as transportation and packaging costs for businesses pile up. Other property is also affected. The US Postal Service is seeking a temporary surcharge of 8% on some of its popular products including Priority Mail.
US diesel, which is used by many freight and delivery trucks, is now returning an average of $5.45 a liter, up from about $3.76 a liter before the war began, per AAA.
“It will mean more expensive bills for the truckers, tractors and trains that fuel the US economy with diesel. It will mean consumers are likely to be greeted with higher grocery prices – and more broadly, higher US inflation,” said Patrick De Haan, head of petroleum research at fuel tracking service GasBuddy.
It is possible that those prices could jump even higher. To Trump’s frustration, most tanker movements through the key Strait of Hormuz – through which nearly one-fifth of the world’s oil once passed – have stalled. That leads to the reduction of producers in the region who do not have the means to import crude into the market. Meanwhile, Iran, Israel and the US have all hit oil and gas facilities, further fueling supply concerns.
“I think it’s weird,” Kelly Gravlin said of gas prices as she filled up her Toyota 4Runner at a Costco in Commerce Township, northwest of Detroit. He paid about $3.95 per gallon on a typical unpaid Tuesday, for a final cost of $70.73.
“We’re in a war we shouldn’t be in, so we’re raising our prices,” Gravlin said. “For a president who fought to lower fuel prices.”
Alisa Howell, from Charlotte, North Carolina, often fills her tank completely when she goes to the gas station. But now, he says he gets enough fuel to do what he needs to do each day.
Howell hopes that gas prices will come down as Trump once promised, but stressed that “government stupidity” continues to affect people’s lives. He blamed the administration for deciding to attack Iran, adding that he did not believe it was justified to go to war.
“It’s unfair to all of us. It doesn’t matter if you’re a Democrat or a Republican. Everybody,” Howell said.
Many drivers are looking for the cheapest rates where they can get them. Danielle Ervin, of Novi, Michigan, stopped at the local Speedway station Tuesday morning because it was offering an 11 cent per gallon discount.
Still, Ervin said what he’s paying now is “bad.” He mentioned that he has to cut some parts of his budget.
“I had to cut back on some of my home streaming services, so the kids would be less upset about that. I had to change which grocery stores I buy my fruits and vegetables from,” Ervin said. “Also, I don’t buy things for myself – sneakers and clothes and all the other things – because I have to take care of the house.”
Despite some efforts by governments around the world to boost supply, including tapping into emergency oil reserves, prices remain high. Analysts such as De Haan insist that all eyes are on the Strait of Hormuz – noting that if the waterway remains closed long enough, US gasoline could rise to $4.50 a liter on average, or reach a previous record of $5.
There are many factors that influence what consumers pay at the pump. Although expensive oil is at the forefront of today’s attacks, US gasoline prices generally rise slightly this time of year. Many drivers hit the road during spring break and try to fill up on gas while they can, so demand is high. The warmer weather is bringing a change to the summer blend fuel, which is more expensive to make than the winter blend.
And again, some states always have higher rates than others. On Tuesday, per AAA, California had a record high of nearly $5.89 per gallon of regular gas. At the time, Oklahoma had the lowest price at about $3.27 a gallon.
The country’s conflicts have contributed to the increase in gas prices in the past. The US benchmark rose to an all-time high of $5 a liter in June 2022, nearly four months after the start of the war in Ukraine and world leaders imposing sanctions against Russia, the world’s top oil producer.
Prices at the tap later fell to that record. Before Tuesday, according to AAA data, the national average was sitting below the $4 mark as of mid-August 2022.
Other parts of the world that rely heavily on oil imports from the Middle East, especially Asia, saw a major energy shock during the Iran war. America’s position as a net oil producer gives it some leverage to fall back on – but that doesn’t mean it’s immune to rising prices. The US still imports crude and refined products such as fuel. In general, oil is a globally traded commodity.
Associated Press reporters Corey Williams in Novi, Michigan, Erik Verduzco in Charlotte, North Carolina, Mike Householder in Detroit, Angela Charlton in Paris and Bill Barrow in Washington contributed.
