US Gasoline Prices Surge as US-Iran War Restarts

Average gasoline prices across the United States rose sharply in July 2026, driven by the restart of a war between the United States and Iran. The national average reached $3.95 per gallon, with analysts warning that the cost could hit $4 per gallon within 48 hours. Regional spikes were significant, with Michigan averages climbing to $4.15 and prices in New York's North Country reaching as high as $4.40.

Fuel costs in the Northeastern United States, including Vermont and New York, surged well above the $4 mark, representing a steep increase over the previous year's average of $3.01. In Missouri, prices rose 16.6 cents over one week to an average of $3.67, while Baltimore saw averages reach $4.00.

Patrick De Haan of GasBuddy attributed the price volatility to a combination of geopolitical conflict and strained global refining capacity. He cited the closure of the Strait of Hormuz and Ukrainian attacks on Russian refineries as critical factors squeezing the supply. While national diesel prices saw a slight dip to $5.07 per gallon, gasoline costs are expected to continue rising as WTI crude approaches $85 per barrel.