Oil Prices Surge as Iran Intensifies Attacks, Threatening Strait of Hormuz

PORTLAND, Ore. – March 17, 2026 – Americans are facing the highest gas prices for spring break since 2022, as escalating tensions with Iran and disruptions to shipping through the Strait of Hormuz drive crude oil prices higher. The national average gas price has risen by 81 cents since February 28, while Oregon’s average has jumped 62 cents.

Current Gas Price Snapshot

As of today, March 17, 2026:

• National Average: $3.79 per gallon (up 25 cents for the week)
• Oregon Average: $4.54 per gallon (up 28 cents for the week)

These prices represent the highest averages since October 2023.

Iran’s Actions and the Strait of Hormuz

The price increases are directly linked to the conflict in Iran and its impact on the Strait of Hormuz, a critical waterway for global oil supply. Iran has intensified attacks on energy infrastructure across the Middle East, and a senior Iranian official warned that the Strait of Hormuz will not return to its previous security conditions. Mohammad Baqer Qalibaf, the Iranian parliamentary speaker, stated that “the Strait of Hormuz cannot be the same as before” and that “there is no longer any security” in the region according to CNN.

Approximately 20% of the world’s oil and refined products pass through the Strait of Hormuz, making it a vital chokepoint for global energy supplies as reported by the Associated Press. Disruptions to traffic through the strait can significantly impact global oil supplies.

U.S. Response and Oil Reserves

In an effort to mitigate rising prices, the U.S. Government announced the release of 172 million barrels of oil from its strategic reserves over four months, as part of a larger international effort by the International Energy Agency to release a total of 400 million barrels. However, the impact of these releases on pump prices remains to be seen.

Crude Oil Price Fluctuations

Crude oil prices have seen significant volatility in recent weeks. Brent crude, the global benchmark, rose 3% on Tuesday, March 17, 2026, trading around $103 a barrel, after an earlier jump of over 4%. WTI, the U.S. Benchmark, climbed 3.7% to around $97 a barrel CNN reports. Crude oil prices remain approximately 40% higher than before the recent US-Israeli strikes on Iran according to CNN.

Marie Dodds, public affairs director for AAA Oregon/Idaho, notes that crude oil prices spiked from around $67 per barrel before the conflict to approximately $95 per barrel this week.

Regional Impacts and West Coast Prices

The West Coast region continues to experience the highest pump prices in the nation, with all seven states in the top ten. California currently has the most expensive gas in the country at $5.54 per gallon. Oregon is fifth most expensive at $4.54 per gallon.

Factors Influencing Gas Prices

• Crude Oil Prices: Approximately 51% of the price of gasoline is determined by the cost of crude oil.
• Refining Costs: Refining accounts for about 20% of the price.
• Distribution and Marketing: 11% of the price is attributed to distribution and marketing.
• Taxes: 18% of the price comes from taxes.
• Seasonal Changes: Refinery maintenance and the switch to more expensive summer-blend fuel contribute to price increases.

Looking Ahead

Oil prices are expected to remain volatile as long as geopolitical tensions in the Middle East persist. The situation in the Strait of Hormuz will continue to be a key factor influencing global oil supplies and gas prices. Drivers can find current gas prices using the AAA Mobile app.