U.S. Gas Prices Hit $4 Per Gallon Amid Iran Conflict

The U.S. national average for regular gasoline returned to $4 per gallon on July 21, 2026, following the collapse of a June provisional peace agreement and a renewal of military hostilities with Iran. Prices climbed from $3.87 the previous week, driven by a supply shock as the Strait of Hormuz became largely unnavigable, disrupting approximately 25% of global oil movement. Brent crude prices rose to between $86 and $91 per barrel, while U.S. crude settled around $82.49.

Donald Trump authorized retaliatory strikes via U.S. Central Command against Iranian command centers, drone sites, and air defense systems. These operations followed an attack on a military base in Jordan that killed two American service members and reports of Iranian attacks on oil tankers. The administration subsequently imposed a blockade on the Strait of Hormuz to protect commercial shipping. Energy Secretary Chris Wright noted the administration has pivoted to ensuring oil flows regardless of Iranian cooperation.

Additional pressures on global refining capacity include ongoing Ukrainian attacks on Russian refineries and low U.S. fuel inventories. While the White House claims prices will plummet once Iranian capabilities are degraded, House Minority Leader Hakeem Jeffries described the situation as a "Republican war of choice" that is making life more expensive. President Trump has responded by urging retailers to lower prices and directing the Department of Justice to investigate potential price gouging by oil companies.