Gas prices are displayed at a gas station on March 30, 2026 in Pasadena, California. (Photo by Mario Tama/Getty Images)
The price of a gallon of regular gasoline climbed more than 31 cents in the past week, spiking to an average of $4.54 per gallon Wednesday, according to AAA, hitting the wallets of drivers after rising 50% since the war with Iran began.
Dig deeper:
The main reason drivers are paying more at the pump is because of the global energy crisis caused by the Iran war. The price of crude oil, which is the main ingredient in gasoline, has been climbing for most of the past two months because the Strait of Hormuz, the narrow passage of the Persian Gulf through which a fifth of the world’s crude oil normally passes, has effectively been shut, and oil tankers have been stranded there unable to deliver crude.
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Many drivers were hopeful in mid-April, amid signs that the conflict could be winding down, and gasoline prices fell daily for almost two weeks.
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Gas prices jump amid Strait of Hormuz blockade
We are learning more as Iran appears to maintain their focus on the Strait of Hormuz as the U.S. Navy’s blockade on Iranian ports continues. LiveNOW’s Alexandra Goldberg is speaking with James Bikales, an energy reporter at POLITICO, as the U.S. says shipping companies could face sanctions for making payments to Iran in exchange for safe passage through the Strait of Hormuz.
What they're saying:
"After the announcement of the initial ceasefire, there was kind of optimism that this really could be the beginning of the end of the conflict," said Rob Smith, director of global fuel retail at S&P Global Energy. "And so crude prices came down correspondingly, gasoline spot prices followed, and so on and ... the retailers lowered prices as well."
But as the war continued, gasoline prices reversed course and began increasing again.
RELATED: Trump pauses plan to guide ships through Strait of Hormuz, says 'great progress' made toward deal
"There’s a fundamental shortfall that will exist globally or fundamental struggle to meet that demand that will drive up price," Smith said. "No matter what a government says or what any market person thinks, there is a true kind of upward pressure that’s being exerted on prices every day the Strait of Hormuz is constrained. And it is still severely constrained."
Which states are seeing the highest and lowest gas prices?
Dig deeper:
According to AAA, western states, including California, Oregon and Washington, are paying above the national average. However, multiple southern states such as Oklahoma, Louisiana, and Alabama are paying below the national average.
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Some states look to suspend gas tax
Lawmakers across the country are working on ways to bring down gas prices as the war with Iran continues. Some states are considering suspending the gas tax to ease the burden on drivers. LiveNOW’s Andy Mac spoke with FOX 10’s Ashlie Rodriguez about the push for a gas tax holiday in Arizona.
Who sets gasoline prices?
Why you should care:
Gas station owners set prices at the pump, but a lot of factors go into what they decide to charge.
The main ingredient in the gasoline cost is the price of a barrel of crude oil. In the U.S., oil prices represented about 51% of the price of a gallon of gasoline in 2025, according to the Energy Information Administration.
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That means when crude oil prices rise, gasoline prices generally follow. Less oil on the market means higher prices for oil and gasoline. And the effective closure of the Strait of Hormuz triggered the largest supply disruption in the history of oil markets, according to the The International Energy Agency, pushing oil prices as high as $112 a barrel in early April.
What's next:
No one can predict how high gasoline prices will climb. A gallon of regular in the U.S. costs more now than it did in early May 2022, and back then, the price kept climbing through Memorial Day, AAA said.
The longer the flow of oil is constrained through the Strait of Hormuz, the higher prices will go, and the longer it will take to get back to normal, Smith said.
The Source: The Associated Press contributed to this report. The information in the story comes from a combination of official data and expert analysis. Gas price figures and state comparisons are based on data from AAA, while insights into oil pricing and its role in gasoline costs draw from the U.S. Energy Information Administration. This story was reported from Los Angeles.