Global Fuel Prices Rise Amid Middle East Tensions

Global fuel prices rose in mid-August 2026, driven by crude oil prices climbing above $80 per barrel. In the United States, the national average for regular gasoline reached between $4.02 and $4.06 per gallon. While some local markets like Peoria, Illinois, saw slight decreases of approximately two-and-a-half cents, prices trended upward across most of the country, including Georgia and Minnesota.

AAA – The Auto Club Group and other market analysts attribute the volatility to several geopolitical factors. These include the closure of the Strait of Hormuz, ongoing Ukrainian attacks on Russian oil refineries, and the collapse of a 60-day interim peace agreement between the United States and Iran on August 17. Global refinery strikes and supply chain challenges have further tightened the market.

The impact extended beyond the U.S., with the Philippines Department of Energy announcing price hikes for gasoline, diesel, and kerosene effective August 18. The International Energy Agency has since cut its global oil supply forecasts due to these disruptions. Some relief is expected in the U.S. market as the transition to cheaper winter-blend gasoline begins.