NEW YORK (AP) — The Iran war has rattled the global flow of oil, driving steeper fuel costs that are already straining households worldwide. In the U.S., drivers are now facing the highest prices at the pump in nearly two and a half years.
According to motor club AAA, the national average for a gallon of regular gasoline jumped to $3.79 on Tuesday, up from $2.98 consumers were paying before the U.S. and Israel launched joint attacks against Iran on February 28. The last time gas prices were this high was in October 2023.
“It’s pretty hard. I mean, times are tough for everybody right now,” said Amanda Acosta, a Louisiana resident, while filling up her car this week. “I’m getting way less gas and paying way more money.” She is far from alone.
Pain at the pump has been one of the most immediate economic impacts of the conflict. The price of crude oil — the main ingredient in gasoline — has soared and fluctuated rapidly in recent weeks due to supply chain disruptions and cuts from major producers across the Middle East.
Brent crude, the international benchmark, settled at over $103 a barrel on Tuesday, up from roughly $70 just weeks ago. Meanwhile, benchmark U.S. crude topped $96 a barrel.
Many eyes are on the White House. Before the war began, President Donald Trump often bragged about keeping gas prices low. But he has since shifted his stance, attempting to portray high oil prices as a positive for the U.S.
Last week, Trump said that because the U.S. is now the world’s largest crude producer, “when oil prices go up, we make a lot of money.” While companies that supply oil benefit from higher prices, rising costs inevitably pinch consumers’ wallets. The current increase comes as many households are already grappling with wider cost-of-living pressures.
Experts warn that higher oil prices could push inflation even higher in the short term and potentially deal a bigger blow to the economy if steep costs persist. This scenario could place additional pressure on the Trump administration, especially as affordability remains a top concern for voters.
“I just want all of it to end. I just want to get out of there, out of Iran,” said Meghan Adamoli, a New Jersey resident who was among customers filling up at a Multani station on Tuesday. While she said she can personally handle the rising gas prices, she acknowledged that many others cannot.
Dan Bradley, a flatbed truck driver from Pennsylvania, has felt the pinch for both his work and personal vehicles. Beyond regular gasoline, the U.S. average for diesel topped $5 a gallon on Tuesday, up from about $3.76 before the conflict started.
“It sucks when you’re filling up,” Bradley said. “What are you going to do, not get gas?”
Meanwhile, Texas resident Clay Plant sees rising oil costs as a positive for his town, Lubbock. He noted that drilling activity has picked up, creating jobs.
“It’s kind of a good sign for us in West Texas,” Plant said. “I look at it as my friends and family get to eat and they get to go to work.”
The U.S. is now a net exporter of oil. However, other parts of the world, especially Asia, which rely more heavily on fuel imports from the Middle East, have experienced more severe energy shocks amid the war.
That said, America is far from immune to price spikes. Oil is a globally traded commodity. Most of the crude produced in the U.S. is light, sweet crude, but refineries on the East and West coasts are primarily designed to process heavier, sour crude. As a result, the country still needs imports.
The road ahead remains uncertain, and prices could worsen if the war drags on. Iran has effectively halted nearly all tanker movement in the key Strait of Hormuz, a vital passage through which roughly one-fifth of the world’s oil once sailed on a typical day.
This disruption has led to production cuts from some major producers in the region because their crude has nowhere to go. Trump has demanded that other countries send warships to reopen the waterway but has yet to secure commitments, as many seek more clarity on America’s next steps in the conflict.
Meanwhile, Iran, Israel, and the U.S. have all struck oil and gas facilities, leaving countries scrambling for alternative supplies.
Last week, the International Energy Agency (IEA) pledged to release 400 million barrels of oil from its member nations’ stockpiles. Trump, who previously downplayed the need to tap into reserve oil, later confirmed the U.S. would release 172 million barrels from its Strategic Petroleum Reserve as part of the IEA’s effort.
The administration also announced it will temporarily ease sanctions to allow Russian oil into the U.S. amid its war with Ukraine.
Still, analysts say these efforts provide only short-term relief. Refineries purchase crude oil in advance, so it takes time for new supplies to reach consumers.
While soaring crude costs are the primary driver of today’s gas prices, several other factors are at play.
U.S. gas prices typically rise at this time of year as more drivers hit the road and the warming weather brings a switch to “summer blend” fuel, which is more expensive to produce than the winter blend.
Additionally, some states have notably higher gas prices than others due to factors ranging from local supply to differing tax rates. On Tuesday, California had the highest average at over $5.54 per gallon, while Kansas had the lowest at about $3.21.
Experts warn that these higher prices could curb wider consumer spending.
As households pay more for necessities like gas, many—especially middle- and low-income families—will have to cut budgets elsewhere, explained Francesco D’Acunto, a finance professor at Georgetown University.
More expensive fuel also impacts other sectors, from transporting groceries to household utility bills.
These combined inflationary shocks, plus overall uncertainty during times of war, “make many households and consumers freeze,” D’Acunto said. He added this could cause some to delay major financial decisions, such as buying a car or home, further slowing economic activity.
“So potentially even that will have such an effect on the overall economy,” he said.
AP journalists Stephen Smith in Madisonville, Louisiana, Geoff Mulvihill in Cherry Hill, New Jersey, and Mingson Lau in Claymont, Delaware contributed to this report.
https://www.boston.com/news/business/2026/03/17/us-drivers-see-gas-prices-jump-to-their-highest-level-since-2023-as-the-iran-war-drags-on/