Iran War Drives Up US Gas Prices: A Deep Dive

The ongoing war between the U.S., Israel, and Iran is significantly impacting U.S. Gasoline prices, with the national average reaching $3.48 per gallon as of Monday, March 14, 2026. This represents a 48-cent increase in the last week and a 58-cent jump from a month ago, according to data from AAA [1]. While current prices remain lower than the pandemic peak of $5.02, the conflict is creating substantial volatility in the energy market.

Disruptions to Oil Supply

The primary driver of these price increases is the disruption to oil shipments through the Strait of Hormuz, a critical waterway connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea [3]. The war has restricted the flow of oil from Saudi Arabia and Iraq, leading to a tightening of global supply. Initially, both West Texas Intermediate (WTI) and Brent crude oil prices surged to nearly $120 a barrel early Monday, before retreating to $94.77 and $98.96 respectively by the afternoon [1].

Regional Price Variations

Gas prices are not uniform across the United States. As of Monday, March 14, 2026, California has the highest average price at $5.20 per gallon, followed by Washington state at $4.63 per gallon. Conversely, Kansas offers the lowest average price at $2.92 per gallon [1].

Diesel Fuel Costs Also Rising

The price of diesel fuel is also experiencing a significant increase, rising nearly 89 cents over the last week to $4.66 a gallon. This is attributed to tighter inventory levels compared to regular gasoline [1].

Government Response and Future Outlook

President Trump stated the U.S. “could do a lot” regarding the Strait of Hormuz and threatened Iran if it were to block the waterway. He also suggested the war could end soon, claiming the U.S. Is “very far ahead of schedule” and that Iran has “nothing left” militarily [1]. The White House has indicated a “strong game plan to keep the energy markets stable” [1]. Experts predict that higher fuel costs could persist for months [3].

Impact Beyond the Pump

The surge in oil prices is not limited to gasoline. The conflict is impacting worldwide energy production, and consumers are feeling the effects across the board [4]. The price of crude oil has shown no signs of halting its rapid climb since the U.S. And Israel launched attacks on Iran [4].