US Gas Prices Hit 2-Year High as Iran Conflict Shuts Key Oil Route

Iran conflict closes Strait of Hormuz causing historic oil shock and surging US, European gasoline prices.

  • The U.S. national average gas price has surged to $3.60 per gallon, a 20% monthly increase and the highest level since mid-2024, with every state now averaging over $3.
  • The primary driver is the Iran conflict, which began on Feb. 28 and has effectively shut down the Strait of Hormuz, causing the largest supply disruption in the history of oil markets.
  • Midwestern states like Indiana and Ohio saw the sharpest weekly increases, while European gasoline prices have also climbed sharply, with some countries seeing 30% weekly jumps.

A geopolitical shock in the Middle East has triggered the most severe oil supply disruption in history, sending gasoline prices soaring across the United States and Europe in March 2026. The conflict involving Iran, which began on February 28, has effectively closed the critical Strait of Hormuz, halting roughly 20% of global oil flows and causing Brent crude prices to skyrocket from $70 to over $110 per barrel.

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Consequently, the U.S. national average for a gallon of gas jumped nearly 35 cents in a single week to $3.60, its highest point since mid-2024. This marks a more than 20% increase from a month ago and, for the first time since 2023, leaves no state averaging below $3, according to data. However, the pain has not been evenly distributed, with Midwestern states like Indiana and Ohio seeing price spikes of over 23%.

Meanwhile, the International Energy Agency responded by authorizing the largest emergency strategic reserve release ever, totaling 400 million barrels. Analysts at Oxford Economics warn that “volatility will remain because of the absence of a timeline for when the conflict will deescalate.” The situation mirrors a crisis in Europe, where gasoline prices have climbed by up to 30% in a single week.

Ravi Ramamurti, a professor at Northeastern University, stated this shock will “add to inflationary pressures” globally. The immediate U.S. outlook remains tense, compounded by seasonal refinery switches to summer-blend gasoline and rising Spring Break travel demand.

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