WASHINGTON — Rising fuel prices linked to the U.S.-Iran conflict have increased costs for American drivers, with the national average for regular gasoline reaching about $4.08 per gallon as of Thursday, according to the American Automobile Association.
The average price has climbed more than $1 per gallon since the escalation of the conflict in late February, when disruptions affected oil supplies and shipping through the Strait of Hormuz, AAA data showed. Some states have seen even higher increases, with diesel prices rising more sharply in certain regions.
The conflict escalated after U.S. and Israeli strikes on Iranian targets, prompting Iranian responses that included actions impacting maritime traffic in the Strait of Hormuz, a key route for global oil shipments. A two-week ceasefire took effect earlier this month, leading to some decline in crude oil futures, but pump prices have remained elevated as full restoration of flows has not occurred, the U.S. Energy Information Administration has noted.
AAA reported that the national average decreased slightly by 7 cents over the past week to $4.09 as of April 16, following the ceasefire announcement, but it stayed well above levels from before the escalation. Crude oil prices have fluctuated, trading below $100 per barrel at times but remaining sensitive to developments in negotiations.
“After last week’s announcement of a two-week ceasefire between the U.S. and Iran, the price for a barrel of crude oil has continued to trade below $100,” AAA said in its latest weekly update. “However, maritime traffic transiting the Strait of Hormuz remains subdued as regional tensions persist and negotiations continue.”
The price surge has affected households and businesses, with higher diesel costs impacting transportation, logistics and agriculture. Some companies have introduced fuel surcharges on shipments and services in response to the increases.
A U.S.-backed ceasefire between Israel and Lebanon took effect separately on Friday, adding to regional diplomatic efforts. President Donald Trump has stated that the U.S. is close to a permanent agreement with Iran, which could influence energy markets if implemented.
As of Friday morning, the national average gasoline price stood near $4.08, according to AAA. Prices vary by state and region, with some coastal areas seeing higher figures due to refining and distribution factors. The situation at the pump remained fluid, dependent on compliance with existing ceasefires and progress in talks. No immediate further data on weekend changes was available.
