U.S. Gas Prices Top $4 a Gallon as Iran War Drives Surge

NEW YORK (AP) — U.S. gas prices jumped past an average of $4 a gallon for the first time since 2022 on Tuesday as the Iran war pushed fuel prices to soar worldwide.

According to motor club AAA, the national average for a gallon of regular gasoline is now $4.02 — over a dollar more than before the war began. The last time U.S. drivers were collectively paying this much at the pump was nearly four years ago, following Russia’s invasion of Ukraine.

The price is a national average, meaning drivers in some states have been paying well over $4 a gallon for a while now. Prices vary from state to state due to factors ranging from nearby supply to differing tax rates.

Since the U.S. and Israel launched a joint war against Iran on Feb. 28, the cost of crude oil — the main ingredient in gasoline — has spiked and swung rapidly. That’s because the conflict has caused deep supply chain disruptions and cuts from major oil producers across the Middle East.

Expensive gas could drag economy and drive up other prices

Higher gas prices are impacting consumers and businesses as many households continue to face wider cost of living strains. And as drivers pay more to cover necessities like gas, many may be forced to cut their budgets in other places.

More expensive fuel can also push up other spending, from utility bills to the price of many goods consumers buy each day.

In the immediate future, analysts point to groceries, which have to be restocked frequently and could also see price hikes as businesses’ transportation costs pile up.

But hauling other cargo and packages has also been impacted. The United Postal Service, for example, is seeking a temporary 8% added charge on some of its popular products including Priority Mail.