US gas prices have officially surged past a national average of $4 a gallon for the first time since 2022. The jump is hitting wallets hard as the Iran war continues to disrupt fuel supplies around the world.
As detailed by ABC News, the national average for a gallon of regular gasoline now sits at $4.02. The last time American drivers saw prices this high was nearly four years ago, following Russia’s invasion of Ukraine. That figure represents a national average, meaning drivers in some states have been paying well over $4 a gallon for some time due to local supply conditions and differing tax rates.
The main driver behind the surge is crude oil costs. Since the US and Israel launched a joint war against Iran on February 28, crude prices have spiked and swung sharply, with the conflict severely disrupting supply chains and prompting output cuts from major Middle Eastern producers.
Diesel is where it really stings
Higher gas prices are affecting consumers and businesses beyond just the cost at the pump. When households pay more for necessities like fuel, budgets get squeezed elsewhere. More expensive fuel also creates a ripple effect, pushing up other costs from utility bills to everyday goods.
Groceries are one area where analysts expect near-term price increases, as those goods require frequent restocking and transportation costs are climbing. The United Parcel Service is also looking to add a temporary 8% surcharge on select services, including Priority Mail, as hauling freight becomes more expensive.
Diesel is averaging $5.45 a gallon, up from around $3.76 before the war started, according to AAA. Most tanker movement through the Strait of Hormuz, which typically handles about one-fifth of the world’s oil, remains halted, leaving major regional producers with no route to market. The US, Israel, and Iran have all struck oil and gas facilities, worsening the supply situation further, amid Iran’s war-era oil revenue reportedly surging despite the disruptions.
In response, the International Energy Agency has pledged to release 400 million barrels of oil from member nations’ emergency stockpiles, including from the US. The Trump administration has also eased sanctions to free up oil from Venezuela and temporarily from Russia, and waived maritime shipping requirements under the Jones Act for 60 days. The DOJ’s push for expanded Gulf drilling on national security grounds is another measure being pursued amid the ongoing supply crunch.
Whether those efforts will deliver meaningful relief at the pump remains uncertain. Refineries buy crude oil in advance, meaning some may be working through more expensive inventory for some time before any new supply affects consumer prices. US gas prices also tend to rise this time of year as more drivers hit the road and refineries shift to more expensive summer blend fuel.
While the US is a net oil exporter, it is not immune to global price swings. Oil is a globally traded commodity, and many refineries on the East and West coasts are built to process heavier, sour crude, meaning the country still depends on imports despite domestic production levels.
The US average for regular gasoline peaked above $5 a gallon in June 2022, roughly four months after the Ukraine war began and sanctions were imposed on Russia. Before the current surge, the national average had remained below $4 since mid-August 2022, according to AAA data.
Published: Mar 31, 2026 05:00 am