Gasoline prices across the United States have risen sharply over the past week as tensions escalate in the growing conflict involving Iran, the United States, Israel, and several Gulf partners. The surge reflects concerns about disruptions to global oil supply routes and the broader economic consequences of instability in a region central to global energy production.
According to data from the AAA, the U.S. national average price for a gallon of regular gasoline climbed 14 percent compared with the previous week, reaching $3.41 as of Saturday. The increase marks the highest national average since April 2024, when prices peaked at $3.67.
Gas prices vary widely by state. Drivers in West Coast states, as well as in Hawaii and Nevada, are facing some of the highest costs. California currently has the most expensive gasoline in the country, with an average price of $5.07 per gallon. At the other end of the spectrum, Kansas motorists are paying around $2.90 per gallon.
The recent rise comes as geopolitical developments have increased uncertainty in global energy markets. The conflict intensified after U.S. and Israeli strikes were followed by retaliatory actions by Iran against Gulf partners. One of the major concerns is the status of the Strait of Hormuz, a key shipping lane off Iran’s coast.
Roughly 20 percent of the world’s crude oil and natural gas passes through the strait. Reports indicate that the conflict has effectively closed the waterway, disrupting a critical route for energy shipments and contributing to volatility in global oil markets.
Energy officials in the region have warned of broader consequences if the situation continues. Saad Sherida al-Kaabi, Qatar’s minister of energy, told the Financial Times that the conflict could potentially halt oil production across Gulf states. He said such an outcome could threaten global economic stability.
“If this war continues for a few weeks, GDP growth around the world will be impacted,” al-Kaabi said. “Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply.”
While global supply concerns have pushed prices upward, U.S. officials have offered more optimistic projections. Chris Wright said Friday that the current price spike could be temporary, predicting that gasoline costs may begin falling within “weeks, not months.”
“We got a little bit of an interruption right now to finally put an end to their ability to wreak havoc, to kill Americans and to terrorize their neighbors,” Wright said during an appearance on “Fox & Friends.”
President Donald Trump, who had highlighted falling gas prices in recent months before the conflict intensified, also downplayed concerns about the current increase. In an interview with Reuters, the president said the geopolitical situation outweighs short-term fuel costs.
“They’ll drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit,” he said.
Market analysts note that prices often rise seasonally heading into spring and summer, when travel demand increases. The Energy Information Administration reported that gasoline production increased last week to an average of 9.3 million barrels per day, while demand declined slightly from 8.73 million barrels per day to 8.29 million.
Economists say the key factor in determining whether prices stabilize will be the duration of the conflict and whether shipping routes reopen. If tensions ease and the Strait of Hormuz resumes normal operations, oil supplies could recover and prices may decline.
However, even short-term price increases can have a broader economic effect. Economist Wayne Winegarden told The New York Times that rising fuel costs can strain household budgets and ripple across the wider economy.
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