U.S. Gas Prices Surge 40% as Iran War Disrupts Global Oil Supply

Gas prices across the U.S. are climbing sharply, and the Iran war is a major reason why.

Since the conflict began in late February, average prices at the pump have jumped more than 40%, reaching around $4.20–$4.30 per gallon, the highest level in years. The spike is tied to a global oil shock caused by fighting and blockades in the Strait of Hormuz, a critical route that carries roughly 20% of the world’s oil supply.

As oil prices surge past $110–$120 per barrel, those costs are flowing directly into gasoline, transportation, and eventually everyday goods.

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The impact is already showing up in inflation, which has climbed to about 3.5% year-over-year, with energy costs playing a key role.

Even though the U.S. produces large amounts of oil, it still operates in a global market, meaning supply disruptions anywhere raise prices everywhere.

If the conflict continues or escalates, economists warn the result could be broader inflation pressure, slower growth, and a potential “stagflation” scenario.