US gas prices top $4 as Iran conflict disrupts oil supplies

The average price for a gallon of regular gasoline in the U.S. has exceeded $4 for the first time in over a month, driven by renewed hostilities between the United States and Iran that have disrupted oil flows through the Strait of Hormuz Source: AP News, CNN. The national average reached $4.09 on Thursday, up 15 cents from a week ago, according to AAA Source: AP News.

What's driving prices

Multiple factors are pushing fuel costs higher. The breakdown of a June ceasefire between the U.S. and Iran has led to attacks on commercial vessels and reduced tanker traffic through the Strait of Hormuz, through which roughly 20% of the world's oil supply travels Source: Al Jazeera. Additionally, Ukrainian drone strikes have damaged 24 of Russia's 34 largest refineries in recent months, tightening global refined product supplies Source: CNBC. U.S. refineries are operating at 96.1% capacity, limiting their ability to boost output Source: CNBC.

Political and economic fallout

High gas prices pose a political challenge for President Donald Trump ahead of midterm elections. The White House claims that as military operations degrade Iran's capabilities, prices will "plummet back to pre-conflict levels" Source: CNBC. However, analysts warn that prices could rise another 10 to 25 cents in the next week Source: CNN. Former Rep. Marjorie Taylor Greene criticized the war, calling it "unnecessary" and noting that gas was under $2 during Trump's first term Source: Fox Business.

Broader economic effects are emerging. Diesel prices have surged to $5.13 per gallon, impacting shipping and raising costs for groceries and other goods Source: AP News, CNBC. Grocery chain Albertsons lowered its 2026 fiscal outlook, citing consumer spending pullback Source: AP News.