US Gas Prices Surge Above $4 Amid Iran Conflict, Diesel Hits $5.45

Fuel prices in the United States have climbed past $4 per gallon for the first time since August 2022, driven by disruptions from the ongoing US-Iran conflict.

According to the AAA motoring organisation, the national average for a gallon of regular gasoline now stands at $4.02—over a dollar higher than before the war began on 28 February. Diesel prices have surged even more sharply, reaching an average of $5.45 per gallon, up $1.70 from pre-conflict levels.

Middle East Tensions Drive Global Fuel Costs

The near-total closure of the Strait of Hormuz over the past month has throttled the production and transport of energy across the Middle East, sending crude oil prices higher. Crude oil, the primary ingredient in gasoline and diesel, has thus become more expensive, directly impacting pump prices.

“The combination of supply constraints and strong seasonal demand, such as spring break travel, has pushed prices to levels not seen in nearly four years,” AAA noted.

Regional Impacts and Global Context

While $4.02 represents a national average, drivers in some states are already paying significantly more. Prices remain below the record highs of $5.01 for gasoline and $5.81 for diesel, set in June 2022 following Russia’s invasion of Ukraine.

Rising wholesale energy costs are being felt globally:

• In the UK, petrol prices have risen 14% and diesel 27% since the conflict began.
• Countries like Sri Lanka and Bangladesh have implemented fuel rationing, while Slovenia became the first EU country to do so last week.
• Australia has temporarily halved fuel sales tax for three months, and two states are offering free public transport to ease the burden on motorists.

Experts warn that as tensions in the Middle East persist, further fluctuations in global energy prices—and consequently at the pump—are likely.