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Nationwide average gas prices have again climbed above $4 per gallon, amid a sharp resurgence in hostilities between the U.S. and Iran, and despite the administration’s commitment to easing energy costs at home.
Officials are now weighing measures to protect global oil shipments through the Strait of Hormuz while the White House also faces growing pressure to address rising fuel costs at home, leaving drivers watching for further policy announcements in the coming days.
While drivers enjoyed significant declines last month, prices have begun to rise amid the unraveling of the provisional peace agreement signed in June, which failed to address several key disputes between the parties and was followed by the exchange of strikes in the region, canceled follow-up negotiations and mutual accusations of ceasefire violations.
Whether fuel prices continue climbing will likely depend on both the security of regional oil exports and any additional steps the administration takes to stabilize energy markets.
As of Monday morning, the national average gas price had increased to $4, down from a recent peak of over $4.50 but up from $3.87 a week ago. Pump prices still depend heavily on where drivers are choosing to fill up, however.
Where Are Gas Prices Highest?
When the U.S. and Israel launched the first strikes on Iran on February 28, Tehran effectively closed off the Strait of Hormuz—through which around a quarter of global oil moves—which still remains largely unnavigable. The resulting supply shock, and damage to much of the region’s energy infrastructure, has inflated oil prices significantly, putting upward pressure on fuel costs globally and in the U.S.
Indiana continues to boast the lowest prices in the nation at $3.35 per gallon, attributed to factors including lower demand and waived state taxes. Indiana is followed by Mississippi ($3.57), Texas ($3.57) and Louisiana ($3.59).
On the other end, Californians are currently paying $5.50 per gallon of regular unleaded, with Hawaii in second at $5.42.
These are the 10 states with the highest gas prices as of Monday, according to AAA:
- California—$5.50
- Hawaii—$5.42
- Washington—$5.01
- Alaska—$4.66
- Nevada—$4.62
- Oregon—$4.56
- Arizona—$4.27
- Pennsylvania—$4.19
- Illinois—$4.15
- New York—$4.15
Iran Escalation Puts Pressure on Prices and Trump
Analysts previously told Newsweek that the West Coast would be hit hardest by the Iran war supply disruptions, given the outsized reliance on Middle Eastern imports and the closure of major refineries in recent years. California also has the highest combined sales and excise taxes on fuel, a fact recently noted by President Donald Trump when he urged gas retailers to lower their prices.
“If Retailers don’t do this, big problems lie ahead!” Trump wrote in a post on Truth Social in late June, adding that stations should be targeting “around the $2.50 a Gallon number.”
Trump has also said the Department of Justice will investigate alleged price gouging by U.S. oil majors—an allegation industry representatives deny.
But the president has in the past suggested that prices could remain elevated beyond the short term—and the collapse of his Iran deal appears to have strengthened this possibility and raised further concerns about inflationary pressures in the lead-up to the midterms. A recent survey from the Harris Poll revealed that 95 percent of Americans believe the country is in the midst of an affordability “crisis,” and a CNN poll from May found that 77 percent—including a majority of Republicans—blame the president for rising costs.
Patrick De Haan, head of petroleum analysis at GasBuddy, told Newsweek there was “not just one” reason for gas prices again being on the rise, citing Iran but also recent Ukrainian strikes on Russian energy facilities—both of which he described as “huge impacts.”
While there are too many “wildcards” to predict future price movements with much certainty, De Haan said “every day” the situation in Iran increases the odds that gas prices will still be elevated come November.
“It could be the most expensive fill up on Election Day ever perhaps,” he added.
Meanwhile, Energy Secretary Chris Wright has said that the administration’s priority has shifted toward ensuring that oil flows through the Strait of Hormuz can recover.
“We needed four to six weeks for military actions. They went for five and a half weeks. We did a pause to try to get an agreement with the Iranian people to allow oil to flow without them attacking it. They’ve proven unwilling to do that. And we’ve pivoted,” Wright told ABC News on Sunday.
Wright said that Trump was looking “for the diplomatic off ramp,” but that the focus was now “assuring that oil and gas and other products can flow through the Strait of Hormuz, with or without Iranian cooperation.”
Contact Newsweek editors on this story: Tobias Meyjes and James Debens
Update 7/20/26 10:06 a.m. ET: This article was updated with comments from Patrick De Haan of GasBuddy.
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