U.S. Gasoline Tops $4 a Gallon for First Time Since 2022 as Iran War Lifts Oil Prices

NEW YORK — The average price of gasoline in the United States climbed above $4 a gallon on Tuesday for the first time since 2022, as the war with Iran continued to disrupt global oil supplies and push fuel costs higher.

According to AAA, the national average for a gallon of regular gasoline reached $4.02, more than a dollar higher than before the conflict began on Feb. 28. The motor club said it was the largest monthly increase it has recorded. U.S. drivers last paid this much on average in August 2022, in the months after Russia’s invasion of Ukraine.

Oil Above $100

Crude oil, the main ingredient in gasoline, has spiked and swung sharply since the U.S. and Israel launched strikes on Iran. Both Brent crude, the international benchmark, and U.S. crude are trading above $100 a barrel, compared with roughly $70 before the war. Most tanker traffic through the Strait of Hormuz, through which about one-fifth of the world’s oil previously passed, remains halted, and strikes on energy facilities in the region have deepened supply concerns.

Diesel, which powers most freight trucks, averaged $5.45 a gallon, up from about $3.76 before the war, according to AAA.

Wide Variation by State

Because the figure is a national average, drivers in many states had already been paying more than $4. California had the highest average on Tuesday at nearly $5.89 a gallon, while Oklahoma had the lowest at about $3.27, AAA data showed. Prices differ due to factors including proximity to refineries and state fuel taxes.

Ripple Effects

Analysts warned that higher fuel costs would spread through the economy. Patrick De Haan, head of petroleum analysis at GasBuddy, said rising diesel prices would increase costs for truckers, farmers and railroads and likely lead to higher grocery prices and broader inflation. The U.S. Postal Service has sought a temporary 8% surcharge on some products, including Priority Mail.

An AP-NORC poll found that 45% of U.S. adults are extremely or very concerned about being able to afford gasoline in the coming months, up from 30% shortly after the 2024 presidential election.

Outlook

De Haan said that if the Strait of Hormuz remains blocked long enough, the national average could rise toward $4.50 a gallon or approach the record of just over $5 set in June 2022.

Seasonal factors are also adding pressure. Demand typically rises in spring as more people travel, and refiners switch to summer-blend gasoline, which is more expensive to produce.

The United States is a net petroleum exporter, which provides some cushion compared with import-dependent regions such as Asia. But because oil is priced on global markets, American consumers remain exposed to international supply shocks.