U.S. Gas Prices Hit $4.09 Amid Middle East Volatility

The national average price for a gallon of regular gasoline in the United States rose to $4.09 during the week ending July 23, 2026, an increase of 15 cents from the previous week. AAA attributed the spike to volatility in the Strait of Hormuz and flared tensions between the United States and Iran, which pushed domestic crude oil prices over $90 per barrel and global prices above $100 per barrel. Crude oil has increased by 26% over the past month, further pressured by indications that the U.S. government is preparing to increase military operations in the Middle East.

Regional impacts varied across the country. In Arkansas, the statewide average jumped 24 cents to $3.79 per gallon. Texas saw a 16-cent increase to a statewide average of $3.71, with the highest prices in El Paso at $3.96 and the lowest in Tyler at $3.57. Other regional averages included Georgia at $3.77 and South Carolina at $3.68.

The surge comes during the late summer travel window and is expected to impact consumer behavior. Rising fuel costs are projected to suppress restaurant traffic, following a 1.2% second-quarter decline in fast-food visits. This economic pressure, combined with a cyclospora outbreak, contributed to a more than 2% drop in restaurant stocks over the past week. AAA recommends that motorists utilize carpooling and optimize fuel economy to mitigate costs throughout the remainder of the summer.