U.S. gasoline prices have surged to an average of $3.70 per gallon, marking a 24% increase since the onset of the Iran conflict on Feb. 28, the American Automobile Association (AAA) said on Sunday. The spike, the highest since May 2024, underscores growing supply anxieties fueled by the conflict involving the United States, Israel, and Iran, drawing parallels to the market volatility seen during the 2022 invasion of Ukraine.
The disruption of crude exports through the Strait of Hormuz has placed a heavy burden on consumers, posing a significant political challenge for President Donald Trump ahead of the November midterm elections. "Geopolitical shocks hit your wallet fast," William Stern, CEO of Cardiff, told Reuters, noting that the impact is felt immediately at the pump.
Analysts expect further upward pressure as the U.S. transitions to more expensive summer fuel blends and security risks in maritime corridors persist. While the International Energy Agency (IEA) has proposed releasing 400 million barrels from strategic reserves, crude prices remain elevated amid uncertainty over the plan's execution and international participation.