Gas prices continue to soar across the U.S. on the back of the war in Iran and associated pressures on global oil supplies.
According to data from the AAA, last week saw the national average price for a gallon of regular gas surge past $4 for the first time since August 2022, with prices now standing at $4.119 as of Monday. This compares to under $3 before the conflict began, with some states seeing far faster increases than others when it comes to pump prices.
Why It Matters
Prior to the U.S.-Israeli strikes on February 28, President Donald Trump and his administration had repeatedly pointed to declining domestic gas prices as evidence of the success of his energy and economic agenda, with costs inching down toward $2 in a handful of states.
But developments in the conflict, most notably Iran’s effective blockade of the Strait of Hormuz, have strained international oil flows and raised both gas prices and other downstream products like jet fuel, while also arousing fears of more widespread economic consequences.
What To Know
According to AAA data, gas prices have risen in every state over the past month, with those in the West seeing some of the sharpest increases.
California currently boasts the highest prices, with a gallon of regular gas costing drivers $5.929 on average, followed by Hawaii ($5.595), Washington ($5.386), Nevada ($5.005) and Oregon ($4.988).
Oklahomans are currently paying the least at $3.272, followed by Kansas ($3.365), North Dakota ($3.451), Nebraska ($3.482) and Iowa ($3.482).
In terms of price changes, Utah has seen the greatest rise, prices climbing $ 1.173 over the last four weeks and several other states also seeing increases exceeding $1.
As experts told Newsweek previously, an outsized reliance on Middle Eastern oil supplies—combined with domestic production pressures—creates greater vulnerabilities for certain states, with California at particular risk amid ongoing pressures to global flows.
Transits out of the region have slowed to a near standstill due to Tehran’s blockade of the Hormuz Strait—through which around a quarter of total seaborne oil trade went prior to the conflict—and recent research from J.P. Morgan estimates that the final Gulf shipments could hit U.S. shores by mid-April.
What People Are Saying
Mark Zandi, chief economist at Moody’s Analytics, told Newsweek previously: “American consumers are suffering a significant financial blow, paying much more at the pump, and will soon face even greater costs as inflation broadly accelerates, undermining their purchasing power. Recession odds were already high prior to the conflict, given the struggling job market, and will likely cross the key 50 percent threshold unless the conflict ends in the next few weeks, if not days.”
What Happens Next
Amid unease over rising oil and gas prices, President Trump has pressured Iran to reopen the Strait of Hormuz, posting an expletive-filled message to Tehran to do so by Tuesday evening.
Iran, in response, has warned of “devastating” retaliation if Trump follows through on the threats to target civilian infrastructure, per the BBC.
