It’s a second $4 surge this year, the first time that’s ever happened.
The average price of gasoline has gone up again across the United States, hitting $4 after previously sinking during a brief reprieve in conflict in the Middle East.
The uptick could stem from a reignited conflict with Iran, as well as the Ukraine-Russia attacks impacting energy markets. The new rise started on Monday morning and doesn’t seem to be slowing anytime soon. According to AAA, the average price per gallon last week was $3.85, after sitting at just $3.14 a year ago. The national average fell to as low as $3.79 a gallon earlier this month.
GasBuddy’s head of petroleum analysis, Patrick De Haan, noted on social media that 2026 has become the first year ever to reach $4 in two separate gas price surges. Once in the spring during the start of the war, now again in midsummer. This remains true for diesel as well, which has hit $5 twice alongside regular gas prices. “While the ongoing U.S.-Iran situation continues to weigh on markets, the story is increasingly less about crude oil and more about global refining capacity,” said De Haan in a blog post.
The new surge continues to affect land vehicles as well as planes, which continue to battle jet fuel costs. According to the International Air Transport Association’s Jet Fuel Price Monitor, the global average jet fuel price last week rose 17.6% compared to the week before to $149.40/bbl. The cost has skyrocketed by 61 percent from the year prior.
Another surge
U.S. gas prices began surging sharply in early March 2026, driven by the escalation of the conflict with Iran and subsequent disruptions to oil flows through the Strait of Hormuz, a vital maritime chokepoint that handles about one-fifth of the world’s seaborne oil supply. The national average jumped from roughly $3.00 up to $4 a gallon by the end of March 2026.
“Continued Ukrainian attacks on Russian refineries further squeeze an already strained supply picture,” says De Haan. “With [West Texas Intermediate] crude approaching $85 per barrel in Sunday night trading, price-cycling markets are likely to see another jolt higher in the coming days, and motorists should brace for a rougher stretch ahead.”
While the national average covers the entire U.S., some major states, particularly on the coastlines, are seeing far more inflated prices. According to AAA, California, Washington, and Hawaii all have their average state gas prices above $5. Other states sititng at more than $4 are Alaska, Nevada, and Arizona. States like Texas and Kansas have been able to keep their prices significantly cheaper because of local clusters of nearby petroleum refineries in the U.S. The proximity to production of a large chunk of the country’s crude oil supply also reduces transportation costs.
President Trump has attempted peace negotiations with Iran, hoping to resolve both the violent conflict as well as its economic fallout, but ceasefires have fallen through on both ends. According to De Haan, last week’s renewed U.S.-Iran escalation sent crude surging more than 10% within days.
“The oil market is tightening again, likely keeping prices supported. Repeated strikes on vessels crossing the Strait of Hormuz have reduced tankers exiting the Gulf, while drone attacks on Russia’s Caspian Pipeline Consortium terminal have halted loadings,” said Giovanni Staunovo, UBS commodities analyst, in a blog post.
This post originally appeared at inc.com.
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