U.S. Gas Prices Surge Amid Middle East Conflict

U.S. gasoline prices rose in late July 2026, driven by renewed hostilities between the United States and Iran and disruptions to critical shipping lanes. The national average increased by 11 cents over one week to $4.11 per gallon. Regional spikes were pronounced in the Southwest and South Florida, with prices reaching $4.39 in Arizona and exceeding $4 per gallon in Monroe, Palm Beach, and Broward counties.

Market volatility is linked to crude oil prices entering the $90 per barrel range due to tensions surrounding the Strait of Hormuz and the Bab al-Mandab Strait. In the Red Sea and Bab al-Mandab, Houthi rebels have attempted to block Saudi Arabian oil shipments. Additional pressure on refined product markets stems from Ukrainian strikes on Russian oil refineries and the lapse of a memorandum of understanding between the U.S. and Iran.

Domestic supply constraints have compounded the issue, as the Energy Information Administration reported that U.S. commercial crude oil inventories remain approximately 6% below the five-year average for the season. To mitigate earlier price shocks following the closure of the Strait of Hormuz, the White House released millions of barrels from the Strategic Petroleum Reserve. Some analysts suggest that a recent weekend pullback in hostilities may moderate further gains, though drivers may still face sustained high costs.