The national average price for regular gasoline in the United States has climbed above $4 per gallon for the first time since 2022, according to data from AAA. As of Tuesday, the average stood at $4.02, marking a sharp increase of more than a dollar compared to levels before the recent escalation of conflict involving Iran.

The surge has been driven largely by rising crude oil prices, which have spiked amid ongoing instability in the Middle East. Disruptions to global supply chains, along with reduced output from key oil-producing nations, have contributed to volatility in energy markets. A significant factor has halted tanker traffic through the Strait of Hormuz, a critical shipping route that typically handles a large share of the world’s oil supply.

Gas prices vary widely across the country, with some states already well above the national average due to regional supply constraints and higher taxes. Diesel fuel, widely used in transportation and shipping, has also risen sharply, averaging $5.45 per gallon, up from roughly $3.76 before the conflict.

The increase is expected to have broader economic effects. Higher fuel costs often translate into increased prices for goods and services, as transportation expenses rise. Industries reliant on shipping, including food distribution, may pass those costs on to consumers. The U.S. Postal Service has already proposed a temporary surcharge on certain deliveries to offset higher fuel expenses.

Federal officials and international partners have taken steps aimed at stabilizing the market. The International Energy Agency announced plans to release hundreds of millions of barrels of oil from emergency reserves, while the U.S. has moved to ease certain sanctions and temporarily adjust shipping regulations to increase supply.

Despite these measures, analysts caution that relief may not be immediate. Refineries typically purchase crude oil in advance, meaning higher costs can take time to work through the system. Seasonal factors, including increased summer driving demand and the switch to more expensive fuel blends, are also contributing to upward pressure on prices.

While the United States produces significant amounts of oil, it remains tied to global markets, leaving domestic prices sensitive to international events. If current conditions persist, fuel costs could continue to rise in the weeks ahead.