Rising crude prices, constrained shipping routes and increased demand are pushing fuel costs sharply higher nationwide.
By yourNEWS Media Newsroom
The national average price for regular gasoline in the United States has climbed significantly in recent weeks, rising roughly one dollar since late February as global oil markets respond to ongoing conflict involving Iran.
According to a March 26 report from AAA Fuel Prices, the average price reached $3.981 per gallon, up 10 cents from the previous week and approximately 33 percent higher than the $2.983 recorded on Feb. 26. A year earlier, the national average stood at $3.150.
AAA indicated that prices could soon cross the $4-per-gallon threshold, noting that increased seasonal demand during spring travel is contributing to upward pressure. “The national average could reach $4/gallon in the coming days for the first time since August 2022,” the report stated.
The price increases coincide with major disruptions to global oil supply tied to the conflict in Iran, now in its fourth week. An estimated 11 million barrels per day have been removed from global markets, contributing to a sharp rise in crude prices.
Brent crude was trading at $106.53 as of late March 26, compared to roughly $70 just prior to the outbreak of hostilities, representing an increase of more than 50 percent. West Texas Intermediate crude futures were reported at $92.75.
The situation has been compounded by disruptions in the Strait of Hormuz, a key maritime corridor through which a substantial portion of the world’s oil and liquefied natural gas is transported. Reports indicate that thousands of vessels are delayed in the region as access remains restricted.
A March 26 social media update from Anadolu Ajansı reported that approximately 1,900 ships were stranded in the strait, though the figure has not been independently verified. Data from the United Nations suggests that around 20,000 seafarers are currently waiting aboard vessels affected by the disruption.
Despite the supply constraints, some market participants expect the situation to stabilize. “For today, the markets are not assuming a huge impact, particularly in oil. If you look at the forward curve, they’re assuming this will end quite fast and things will stabilize quite quickly,” said Shemara Wikramanayake, chief executive of Macquarie Group, during remarks at a financial symposium in Melbourne.
At the same time, the economic effects are becoming more visible. Sultan Al Jaber, chief executive of Abu Dhabi National Oil Company, said rising energy costs are having broad consequences. “This is raising the cost of living for those who can least afford it and slowing economic growth everywhere. From factories to farms to families around the world, the human cost is mounting by the day,” he said.
Within the United States, regional price differences remain pronounced. AAA data shows California with the highest average at $5.84 per gallon, followed by Hawaii at $5.33 and Washington at $5.30. Nevada and Oregon averaged $4.86, while Arizona reached $4.63. Lower-cost markets included Oklahoma at $3.25, Kansas at $3.27 and Iowa at $3.31.
The Trump administration has taken several steps aimed at increasing supply and moderating prices. These include scheduling the release of approximately 172 million barrels from the U.S. Strategic Petroleum Reserve and coordinating with International Energy Agency member nations to release an additional 400 million barrels.
Additional measures include a Treasury Department license allowing temporary purchases of Russian crude currently stranded at sea, along with eased restrictions on Venezuelan oil production to enable U.S. companies to engage with state-run entities.
Officials have also indicated the possibility of lifting sanctions on Iranian oil shipments already in transit, which could add an estimated 140 million barrels to global supply.
On March 25, the Environmental Protection Agency issued a temporary 20-day emergency waiver permitting expanded sales of gasoline with higher ethanol blends to help offset supply pressures.
“[After] closely monitoring fuel markets for potential supply disruptions that could create extreme and unusual conditions … we foresee potential for a disruption to the American fuel supply,” EPA Director Lee Zeldin said at the CERAWeek conference.
Meanwhile, diplomatic efforts continue. President Donald Trump announced a delay in potential strikes on Iranian energy infrastructure, extending a deadline as negotiations proceed.
“As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 P.M., Eastern Time,” Trump wrote in a March 26 social media post, adding that discussions were progressing.
“Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well,” he said.
The trajectory of fuel prices in the coming weeks is expected to depend on both developments in the conflict and the effectiveness of measures aimed at stabilizing global supply.
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