U.S. gas prices have climbed back above $4 per gallon as the war in Iran continues to disrupt global energy markets and put pressure on oil supplies.
According to AAA data, the national average price for a gallon of regular gasoline reached $4.01 on March 31. That is up more than $1 from $2.98 a month earlier. A year ago, the average was $3.15 per gallon. It is the first time gas prices have hit $4 per gallon since August 2022, when Russia’s war against Ukraine pushed energy costs higher.
Diesel prices have also surged. The national average price for a gallon of diesel rose to $5.41 on March 30, up from $5.28 a week earlier. Diesel cost $3.75 last month and $3.60 a year ago.
The price spike comes as oil prices have jumped sharply since U.S.-Israeli military operations against Iran began on Feb. 28. Iran has responded by launching missiles and drones at Israeli and U.S. targets across Gulf nations. The fighting has rattled energy markets and raised fears about the security of supplies moving through the Middle East.
A major concern is the Strait of Hormuz, one of the world’s most important energy chokepoints. A large share of global oil and gas shipments passes through that narrow waterway. As the conflict has worsened, many tankers have stopped transiting the strait, adding to supply fears and pushing oil prices higher.
The Trump administration has taken several steps in an attempt to contain the surge. It temporarily authorized the sale of Russian crude oil and petroleum products that were stranded at sea through April 11. The Treasury Department also issued a 30-day sanctions waiver on March 20 to allow the sale of Iranian crude oil and petroleum products stranded at sea.
President Donald Trump said on March 30 in a Truth Social post that U.S. officials were in talks with what he called “a new, and more reasonable regime” to end military operations in Iran in exchange for Tehran surrendering its nuclear weapons program and meeting other conditions. He also warned that U.S. forces could destroy Iran’s energy infrastructure if the regime does not reopen the Strait of Hormuz.
Trump had earlier given Tehran a 48-hour deadline to reopen the strait. That deadline was later replaced with a five-day deadline on March 23, then extended again on March 26 by another 10 days to April 6 after what Trump said was a request from the Iranian regime.
Iran’s Islamic Revolutionary Guard Corps has threatened to close access to the Strait of Hormuz and target energy facilities in Middle Eastern nations that host U.S. forces if the United States or Israel strikes Iran’s energy infrastructure.