Average U.S. gasoline prices climbed above $3 per gallon on Monday for the first time since November, as escalating conflict with Iran rippled through global energy markets and pushed crude and fuel prices sharply higher.
According to Reuters, retail gasoline crossed the $3 threshold as Brent crude surged more than 5% to nearly $77 per barrel, with prices briefly topping $80 in early trading. Tehran’s retaliation following U.S. and Israeli strikes has disrupted oil and fuel shipments across the Middle East, particularly through the Strait of Hormuz, a critical artery for global energy flows.
Fuel markets have reacted even more aggressively than crude. Diesel futures jumped 17% at the open, outpacing Brent’s 13% spike, as traders priced in acute supply risks. Analysts at Kpler say diesel faces the most immediate physical pressure due to limited alternative supply, its concentration in key exporting regions, and its central role in military and industrial logistics.
The rise at the pump presents a political challenge for President Donald Trump as midterm elections approach. Nearly half of respondents in a recent Reuters/Ipsos poll said they would be less likely to support the Iran campaign if U.S. oil and gas prices increase. “Gasoline prices are psychologically powerful,” said Mark Malek, chief investment officer at Siebert Financial. “They are the inflation number that consumers see every single day.”
Gasoline prices had already been rising for four straight weeks before the Iran conflict escalated, as refiners began switching to more expensive summer-grade fuel — a seasonal pattern that normally pushes U.S. pump prices higher each spring. Analysts say the geopolitical disruption in the Middle East is now compounding that trend, with Brent crude and refined products jumping sharply as markets price in risks to supply flows through the Strait of Hormuz.
The impact is being felt unevenly across the country. In states like Washington, drivers are already experiencing some of the highest prices in the nation, with AAA reporting averages near $4.29–$4.35 per gallon — far above the national average.
By Charles Kennedy for Oilprice.com
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