In the United States, the Iran war’s impact on global oil markets has shown up quickly for drivers at gas stations, with prices rising to levels last seen in late 2023, Associated Press reported. The immediate effect is tied to the way crude oil prices have surged and swung in recent weeks, a change AP described as driven by supply disruptions and production cuts in parts of the Middle East involved in the conflict.
AAA reported that the national average price for a gallon of regular gasoline jumped to over $3.84 on Wednesday. AP contrasted that figure with what consumers were paying before the U.S. and Israel attacked Iran on Feb. 28, when the average was $2.98, and it noted that the last time U.S. gas prices were as high was in September 2023.
AP also reported that drivers described the increase as painful and immediate. Amanda Acosta, a Louisiana resident, told AP while filling up that she was “getting way less gas and paying way more money,” as gasoline prices pushed household budgets. In Mississippi, Thelma Williams said she was shocked when her tank total topped $60, adding that she wanted the war to end partly because she wanted gas prices to come down for people who might not be able to afford higher costs.
Beyond gasoline, AP said diesel costs are rising as well, citing AAA. Dan Bradley, a Pennsylvania flatbed truck driver, told AP he had felt the higher prices for both work and personal vehicles, and AP reported that AAA put the U.S. average for diesel near $5.07 a gallon on Wednesday—its highest level since 2022—after diesel had averaged about $3.76 before the Iran war started.
AP said attention has also turned to the White House as U.S. fuel bills rise. Before the war, President Donald Trump had “bragged about keeping gas prices low,” AP reported, and it said he has since shifted to framing higher oil prices as beneficial to the U.S., pointing to his statement that because the U.S. is the world’s largest crude producer, “when oil prices go up, we make a lot of money.”
The broader pricing pressure, AP reported, runs through globally traded oil. AP said Brent crude—used as the international standard—was trading at over $108 a barrel Wednesday, up from roughly $70 just weeks earlier, and it put the benchmark U.S. crude price at almost $98 a barrel. AP said some of that change connects to the war’s effect on tanker traffic and refinery supply chains, including the Strait of Hormuz, where Iran has halted nearly all tanker movement, and to actions affecting oil and gas facilities by Iran, Israel and the U.S.
While the U.S. is now a net exporter of oil, AP said it is still exposed to global price swings because refiners on the East and West coasts often process heavier, sour crude, requiring imports. AP reported that the road ahead remains uncertain and that prices could worsen if the war drags on, even as the International Energy Agency pledged to release 400 million barrels of oil from emergency stockpiles of member nations, including the U.S. The Trump administration, AP reported, has also eased sanctions to free up some oil from Venezuela and temporarily Russia, and it said the White House is waiving maritime shipping requirements under the Jones Act for 60 days.
Still, analysts told AP that the measures may not deliver immediate relief because refineries buy crude in advance and supply changes can take time to filter down to consumers. AP said gasoline also tends to tick higher seasonally as more drivers hit the road and as the warming weather brings a shift to “summer blend” fuel. It added that state averages can differ based on local factors like nearby supply and tax rates, citing Wednesday averages that placed California at over $5.56 per gallon and Kansas at about $3.23.
AP also reported that the fuel costs could carry wider consequences as households adjust spending. Francesco D’Acunto, a finance professor at Georgetown University, told AP that as consumers pay more for necessities like gas—especially middle- or low-income households—they may cut budgets elsewhere, with impacts that can extend beyond fuel to areas such as grocery transport and household utility bills. D’Acunto warned the overall uncertainty during war “makes many houses and consumers freeze,” and he said that could cause some people to delay major financial decisions such as buying a car or house, with potential knock-on effects for the broader economy.