US Gas Hits $3.54 a Gallon, Up 55¢ Since Iran War Began

Gas prices in the United States have surged since the Iran war began, rising more than 55 cents per gallon from about $2.98 on Feb. 28 to $3.539 today, MarketWatch reports, citing AAA data.

The average price of regular gasoline nationwide now stands at $3.539 per gallon as of March 10, after climbing rapidly over the past week as crude oil prices jumped amid fears of supply disruptions in the Middle East.

Analysts say prices could continue climbing as gas stations pass along higher wholesale fuel costs tied to the spike in oil markets.

“It’s extremely rare to see such a fast-paced increase,” said Patrick De Haan, head of petroleum analysis at GasBuddy, noting that the recent jump ranks among the fastest weekly increases in more than two decades of gasoline price data.

The surge follows escalating military strikes across the Middle East that briefly pushed oil prices above $100 per barrel, forcing fuel markets to rapidly adjust to the risk of prolonged disruptions to global energy supplies.

“Oil prices did rise beyond the $100 mark sooner than I thought,” De Haan said, adding he had hoped there would be “a tangible and cohesive plan to execute on for the Strait of Hormuz that obviously has not happened.”

Analysts say gasoline prices could climb further in the coming days as retailers adjust to higher costs.

GasBuddy estimates prices in many states could increase another 20 to 50 cents per gallon this week, potentially pushing the national average close to $3.70 — and possibly near $4 per gallon if crude prices remain elevated.

The price shock is already far more severe in California.

The average price of regular gasoline in California is about $5.29 per gallon, according to AAA, the highest in the country and nearly $1.75 higher than the national average.

But the sticker shock is even greater at some individual stations.

Reports from Los Angeles show at least one station charging as much as $8.21 per gallon, underscoring how quickly retail prices can spike in California’s tightly constrained fuel market.

California gasoline is typically far more expensive than the rest of the country because of higher fuel taxes, specialized environmental fuel blends and limited refining capacity, factors that can amplify price swings when global oil supplies tighten.

Analysts warn prices could continue climbing if the Middle East conflict drags on.

“The longer the Iran conflict goes on, the more susceptible the market becomes to incredible price spikes,” said Denton Cinquegrana, chief oil analyst at OPIS.

Economists say gasoline prices have an unusually strong psychological impact on consumers.

“At $4 a gallon, the consumer starts to figure out how to use less gasoline,” said Andy Lipow, president of Lipow Oil Associates, noting that drivers often respond by traveling less, combining errands or carpooling.

Research shows motorists tend to change driving habits once prices exceed the levels they have grown accustomed to over the past year.

“We’re definitely in that territory,” said Clemson University economist Matthew Lewis. “Now drivers are paying attention.”