U.S. Gas Prices Surge Amid Middle East Tensions

Gasoline prices across the United States remained elevated with a national average of $4.09 per gallon, driven by crude oil costs settling at $84.46 per barrel. On July 31, 2026, several states saw overnight price jumps of approximately 10 cents. In Michigan, the average price rose to $4.37 per gallon, while Ohio's average reached $4.00 per gallon. Higher costs were particularly acute in California and Nevada, where state averages reached $5.64 and $4.81 respectively.

AAA Mountain West Group and other regional associations attribute these increases to Middle East tensions and conflict involving Iran, specifically instability along the Strait of Hormuz. These geopolitical pressures are compounded by domestic supply issues; the Energy Information Administration reported a decrease in crude oil inventories by 7.2 million barrels, leaving stocks 7% below the five-year average.

Despite these spikes, consumer sentiment is shifting slightly. A Rasmussen Reports survey found that 69% of American adults perceive gas prices as higher than they were a year ago, a decrease from the 83% who felt the same in May. While seasonal trends typically bring relief in August as road trips wind down, elevated crude oil prices may delay this typical shift.