US gasoline crosses $4 a gallon as Iran war disrupts global oil supply
The national average price of regular gasoline rose to $4.018 per gallon on Tuesday, according to AAA data, breaching $4 for the first time since August 2022 and marking the most visible consumer consequence of the US war with Iran to date.
The pace of the move is striking: prices stood at $2.98 per gallon just one month ago, meaning the pump price has risen by approximately 35% in four weeks. The proximate cause, according to multiple reports, is severe disruption to shipping through the Strait of Hormuz, the chokepoint through which a significant share of global oil supply travels. The conflict has roiled global energy markets more broadly.
The price level carries dual significance. For consumers, it represents a material increase in a highly visible household expense, landing at a moment when inflation pressures have already been weighing on sentiment. The New York Times characterised the development as a "headache" for both drivers and President Trump, who now faces a political liability tied directly to a military action he initiated.
The last comparable episode, in summer 2022, was driven by supply disruptions following Russia's invasion of Ukraine, combined with post-pandemic demand recovery. That episode prompted the Biden administration to release strategic petroleum reserves. There is no indication in the available sources of a comparable policy response under the current administration.
