US gasoline prices surpass $3.50 a gallon at the pumps as iran war rages on
Key Takeaways
- U.S. average gasoline price exceeded $3.50 per gallon this week
- Price level reached the highest point since mid-2024
- U.S.–Israel war with Iran disrupted oil supply via the Strait of Hormuz, fueling inflation worries
Price surge
Data from price-tracking services AAA and GasBuddy showed the national average retail price of gasoline crossed $3.50 a gallon this week to hit its highest since May 2024.
“Published by Global Banking & Finance Review® Posted on March 11, 2026 3 min readLast updated: March 11, 2026 Published by Global Banking & Finance Review® Posted on March 11, 2026 3 min readLast updated: March 11, 2026 U”
The national average stood at $3.58 a gallon on Wednesday.
Supply disruptions
The article says the U.S.–Israel war with Iran has disrupted Middle Eastern oil exports through the Strait of Hormuz, causing a global surge in fuel prices.
William Stern said, “Geopolitical shockwaves don't take months to hit your wallet. They take days.”
Economic and political impact
The price jump is squeezing consumers and threatening global economic activity.
“Published by Global Banking & Finance Review® Posted on March 11, 2026 3 min readLast updated: March 11, 2026 Published by Global Banking & Finance Review® Posted on March 11, 2026 3 min readLast updated: March 11, 2026 U”
The article warns it could pose the biggest political risk for U.S. President Donald Trump and his Republican Party ahead of the November midterms.
The national average has jumped nearly 60 cents since Trump's decision to join Israel in attacking Iran on February 28, a 20% increase in just 11 days.
The article compares this rise to the rapid pump-price increase after Russia invaded Ukraine four years ago.
Market outlook and uncertainty
Further increases are likely as more ships were hit in the Strait of Hormuz and as the United States transitions to costlier summer-grade gasoline.
Spot and wholesale gasoline prices were registering double-digit increases and wholesale changes typically show up at the pumps the next day, Denton Cinquegrana said.
Crude prices were rising despite the International Energy Agency's proposal to release a record 400 million barrels from strategic stockpiles.
The IEA announcement “raised more questions than answers” because the group did not say who would release how much oil and when, Cinquegrana said.
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