By Ginika Igboke
The national average retail price for regular gasoline in the United States climbed to $4 per gallon on March 31, reflecting a sharp rise in global oil prices fueled by the ongoing conflict involving Iran.
This marks the first time gas prices have reached the $4 threshold since August 2022, when Russia’s invasion of Ukraine sent energy markets into turmoil, according to data from the American Automobile Association (AAA).
AAA figures show the average price for a gallon of gasoline reached $4.018 on March 31, a significant increase from $2.982 just one month earlier. A year ago, the average stood at $3.159 per gallon, highlighting the scale of the recent surge.
Diesel prices have also risen steeply. The national average for a gallon of diesel hit $5.416 on March 30, up from $5.285 the previous week. By comparison, diesel cost $3.758 last month and $3.609 a year ago.
The spike in fuel prices follows escalating tensions in the Middle East. Oil markets have reacted strongly since U.S.–Israeli military operations against Iran began on Feb. 28. In response, Iran has launched missile and drone attacks targeting U.S. and Israeli assets across Gulf nations, raising fears of a broader regional conflict.
A key factor driving prices higher is disruption in the Strait of Hormuz, a vital maritime chokepoint through which a large portion of the world’s oil and natural gas shipments pass. Heightened security risks have led many oil tankers to halt or reroute transit through the strait, tightening global supply and pushing prices upward.
In response, the Trump administration has taken steps aimed at stabilizing energy markets. One measure includes temporarily authorizing the sale of Russian crude oil and petroleum products that are currently stranded at sea, with the authorization set to remain in effect until April 11.
The U.S. Treasury Department has also issued a 30-day sanctions waiver allowing the sale of Iranian crude oil and petroleum products that were unable to reach markets due to restrictions. Treasury Secretary Scott Bessent said the move could release as much as 140 million barrels of oil into global supply, although Iran’s access to the resulting revenue would remain limited.
International efforts to ease the supply crunch are also underway. On March 11, member countries of the International Energy Agency (IEA) agreed to release a record 400 million barrels of oil from strategic reserves. The United States is contributing 172 million barrels from its Strategic Petroleum Reserve as part of that coordinated effort.
Meanwhile, diplomatic and military tensions remain high. On March 30, President Donald Trump said U.S. officials were engaged in talks with what he described as “a new, and more reasonable regime” in Iran, aiming to end hostilities in exchange for Tehran abandoning its nuclear weapons program and meeting other conditions.
Trump has repeatedly warned that the United States could target Iran’s energy infrastructure if the Strait of Hormuz is not reopened. While he initially issued a 48-hour deadline for Iran to act, that timeline has been revised multiple times amid ongoing negotiations, with the latest extension pushing the deadline to April 6.
Iran’s Islamic Revolutionary Guard Corps has responded with its own warnings, threatening to block access to the Strait of Hormuz and target energy facilities across the Middle East—particularly in countries hosting U.S. forces—if its infrastructure comes under attack.
As tensions persist, global energy markets remain volatile, with fuel prices likely to stay elevated in the near term as geopolitical risks continue to influence supply and demand.
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