US Gasoline Prices Surge 37% Amid Escalating Tensions with Iran

Gasoline prices across the United States surged sharply in recent weeks, rising by nearly 37% since the outbreak of hostilities involving Iran in late February, underscoring the global energy market’s sensitivity to geopolitical conflict.

According to data released by the American Automobile Association, the national average price for regular gasoline reached $4.10 per gallon on Saturday, marking a weekly increase of 12 cents. The steady climb reflects mounting pressure on fuel supplies and rising crude oil costs.

Fuel prices continue to vary significantly across states. California recorded the highest average at approximately $5.92 per gallon, while Oklahoma reported one of the lowest at $3.29 per gallon, highlighting persistent regional imbalances in pricing.

At the heart of the surge lies disruption in the Strait of Hormuz, a critical oil corridor through which nearly 20% of global oil supply passes. Increased tensions and operational constraints in the waterway have forced tankers to reroute or incur additional fees, significantly raising transportation costs.

Analysts point to both logistical disruptions and reduced oil output in the Middle East as key drivers behind the sustained rise in crude prices, which have climbed above $110 per barrel this week.

Despite being one of the world’s largest energy producers, the United States remains exposed to global oil price fluctuations. Energy experts emphasize that oil is traded in an interconnected international market, meaning domestic prices inevitably reflect global supply shocks.

The rise in fuel costs is already cascading into other sectors. Shipping giants such as UPS and FedEx have introduced fuel surcharges exceeding 25%, while the United States Postal Service is set to raise service fees by 8% starting later this month.

In the retail sector, Amazon has implemented a 3.5% surcharge on third-party sellers, reflecting broader inflationary pressures linked to energy costs.

Speaking earlier this week, Donald Trump suggested that U.S. involvement in the conflict could wind down within weeks, though he provided limited details. However, market analysts caution that even a swift resolution may not immediately ease prices.

The strategic vulnerability of the Strait of Hormuz remains a long-term concern for global energy markets, with any future disruptions likely to trigger renewed volatility.