US gas prices climb back to $4 a gallon as tensions rise

AAA data showed U.S. gasoline prices climbed back to an average of $4 a gallon Monday as the United States and Iran launched more attacks. The national average for regular gasoline had fallen below $4 for the first time since June 17 before reversing, a reminder of how quickly geopolitical shocks can hit drivers’ wallets.

At $4 a gallon, a 15-gallon fill-up costs about $60 before local taxes and fees, and the effect can spread beyond the curb pump. Trucking companies, delivery fleets and retailers absorb higher fuel costs through diesel use and fuel surcharges, then work those charges into shipping bills and store prices. That is why a move in crude often reaches households within days, not months.

Oil markets were already under strain as the Iran-Israel conflict escalated, with prices rising more than 4% and traders focusing on the Strait of Hormuz. About 20% of the world’s oil and liquefied natural gas flows through that narrow waterway every day, making it one of the most important pressure points in the global energy system. When fighting threatens traffic there, crude prices tend to jump first and gasoline follows soon after.

Patrick De Haan of GasBuddy warned that prolonged unrest could push gasoline closer to $4 a gallon, though he said it would likely not match the 2022 spike. U.S. gasoline prices topped $4 per gallon for the first time since 2022, and the latest move keeps that benchmark in view if tensions widen or shipping routes face deeper disruption. AAA and the U.S. Energy Information Administration remain the main public gauges for watching whether this is a short-lived spike or the start of a longer stretch of higher fuel costs.