Gasoline prices topped $4 per gallon nationwide on Tuesday, with the national average price at the pump hitting $4.02, its highest level since August 2022, according to AAA data.
This rise comes as the US-Iran war enters its fifth week, and is the latest milestone to be reached by gas prices which are now up about $1 on average, from one month ago, with most of those gains coming since the outbreak of the Middle East conflict.
The national average at the pump rose to $4.018 per gallon, its highest level in nearly four years, according to AAA data.
Underlying oil prices on international Brent crude (BZ=F) and US West Texas Intermediate crude (CL=F) have surged by roughly 50% each over the past month since the war began. Futures on the two energy products were trading around $107.80 per barrel and $102 per barrel, respectively.
Read more: How oil price shocks ripple through your wallet, from gas to groceries
On March 25, the Trump administration eased federal ethanol restrictions by issuing an emergency waiver for E15 gasoline, a move designed to increase the supply of a less expensive blend of fuel ahead of the warmer weather driving season. The White House also issued a temporary 60-day waiver on so-called “Jones Act” requirements that make domestic shipping more expensive.
Neither move, however, has managed to truly pull gas prices back across the country.
While consumers have had to shell out more money to fill up their vehicles over the past month, truckers have been paying even more. The national average for a gallon of diesel reached $5.45 on Tuesday.
Strategists warn oil prices — and therefore, prices on refined products including gasoline, diesel, and jet fuel — could climb further if the conflict drags on.
Goldman Sachs analysts raised their Brent forecast for April from $85 to $115, “as a longer disruption supports the risk premium for longer,” given the uncertainty surrounding the Strait of Hormuz. Senior officials in Saudi Arabia have modeled Brent at $180 if the war is to last through April, and strategists at Macquarie have said Brent could cross $200 if the conflict lasts through June.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
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