How much extra are you spending on gas due to the conflict with Iran?

Gas Prices Surge Nationwide Amid Iran Conflict

Following U.S. and Israeli airstrikes on Iran that began February 28, Americans are facing higher fuel costs across the country. Iran responded by shutting down the Strait of Hormuz, causing significant disruptions to the global oil market.

According to AAA, by March 11, every state in the U.S. saw an increase in regular gasoline prices compared to the previous month. The price hike ranged from an additional 30 cents per gallon in Hawaii to 87 cents more in Arizona.

The national average for gasoline climbed to $3.58 per gallon, marking a 23% jump from the prior month. This increase is among the largest monthly spikes since 2020, based on a USA TODAY review of AAA data using a 30-day rolling average.

Previous reports from USA TODAY noted that consumers begin to feel financial strain when gas prices reach $3.50 per gallon.

Experts anticipate further price increases as the conflict persists, fueled by ongoing supply shortages and broader economic instability.

Impact of the Ongoing Conflict

As of March 11, hostilities continued, with three ships reportedly attacked in the Strait of Hormuz. In less than two weeks, over a thousand people in Iran and hundreds more throughout the region have lost their lives, including seven American service members.

Among the casualties were at least 175 individuals, most of them children, who were at a girls' school in southern Iran when a U.S. Tomahawk missile struck the building on February 28, according to The New York Times citing a U.S. military investigation.

Global Oil Trade and Political Response

The Strait of Hormuz is a critical passage for about 20% of the world's oil shipments. President Donald Trump is under increasing scrutiny to address the rising gas prices and his administration's approach to Iran.

On Tuesday, crude oil prices dipped after Trump stated the conflict was "very complete" and would end "soon." However, prices rebounded by 5.1% on Wednesday following reports that Iran threatened additional disruptions to oil supplies.

Although crude oil prices can fluctuate rapidly, industry experts note that changes at the gas pump tend to lag behind. As a result, even if crude prices drop, consumers may not see immediate relief when refueling.

Understanding Gas Price Components

The U.S. Energy Information Administration reports that crude oil accounts for about half of the price paid at the pump. The remaining portion covers refining, distribution, marketing, and taxes.