Gas jumps to two-year high of $3.88 as Iran war tightens global oil supply
Gas prices in the U.S. have climbed sharply, with the national average now at $3.88 a gallon. The increase follows a rapid rise in global oil prices tied to the war in Iran and disruptions to key supply routes.
That’s up nearly a dollar from a month ago and the highest level since September 2023, according to AAA. Diesel is climbing too, topping $5 a gallon nationwide and clearing $6 in some states.
Oil surge drives price spike
The increase is tied directly to crude oil, which makes up more than half the cost of a gallon of gas.
Brent crude has jumped from roughly $70 a barrel before U.S. and Israeli strikes on Iran in late February to more than $110. U.S. benchmark crude is now near $100. Prices have moved quickly as supply tightens and traders react to continued disruption.
Iran has warned it could target energy infrastructure across the region, including facilities in Qatar, Saudi Arabia and the United Arab Emirates. That risk is keeping pressure on prices.
Strait disruption cuts supply flow
Shipping through the Strait of Hormuz has slowed, restricting one of the world’s most important oil routes.
Roughly one-fifth of global oil supply typically moves through that corridor. With tanker traffic reduced, producers have fewer ways to move crude, tightening supply further.
That pressure is now showing up at U.S. pumps, even with domestic production still high.
The Wall Street Journal reports the Trump administration is pushing to reopen the Strait, including deploying a Marine rapid-response unit to the region as it looks to restore oil flow.
White House steps unlikely to lower prices quickly
The administration issued a 60-day waiver of the Jones Act to allow more flexibility in domestic shipping.
Analysts say the move will not bring immediate relief. Oil markets are reacting to supply risk tied to the conflict and what happens next in the Strait.
Federal Reserve Chair Jerome Powell said Wednesday rising energy prices are already pushing inflation higher. He said it is too soon to know how long the impact will last.
Drivers absorb higher costs
Higher fuel prices are already hitting household budgets.
“I do a lot of traveling around for my job, so gas is a pretty big deal,” said Dustin Holifield, a veteran. “It’s tough right now. These prices are through the roof.”
Thelma Williams, also a veteran, said she wants to see the conflict end.
“I would love to see the war end cause I don’t know what it’s for. I don’t know what happened, what started it,” she said. “But I would love to see the gas prices go down because everyone might not be financially able to meet the demands of these high prices.”
Fuel prices are likely to stay elevated if supply disruptions continue.
Ella Rae Greene, Editor In Chief
