US Fuel Prices Surge as Iran Conflict Tightens Global Supply

(MENAFN) Retail gasoline prices in the United States have risen above $4.50 per gallon for the first time since mid-2022, as ongoing instability linked to the war involving Iran continues to pressure global fuel supply chains.

According to industry data cited in reports, the national average for regular unleaded fuel reached $4.54 per gallon on Tuesday. This marks a significant increase compared to recent months and places prices near the highest seasonal levels recorded.

Although current levels remain below the peak of $5.01 per gallon seen in June 2022, the latest increase reflects persistent upward pressure on energy markets. Prices remain particularly elevated in states such as California, where averages have surpassed $6 per gallon, while several other regions, including parts of the Midwest, are approaching the $5 mark.

Rising fuel costs are contributing to broader inflationary pressure, affecting consumer spending and household budgets across the country.

Prices briefly eased earlier in the spring following a temporary pause in hostilities between the US and Iran, but remained elevated above the $4 threshold. The benchmark was first exceeded in March and has stayed consistently high since then.

Since the escalation of the conflict, gasoline prices have increased by more than $1.50 per gallon, reflecting continued market sensitivity to geopolitical developments and supply disruptions.

Market indicators also show that gasoline futures, which had previously stabilized near $3 per gallon during earlier phases of the conflict, surged toward late April, reaching their highest levels since 2022.

Despite occasional diplomatic signals suggesting progress toward de-escalation, energy markets remain volatile as traders monitor the situation for any lasting resolution that could stabilize global supply flows.

MENAFN06052026000045017281ID1111076572