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Drivers are seeing the highest gas prices in more than a year and a half as the U.S.-Iran war disrupts the global oil trade.
The average price per gallon of unleaded gas in the U.S. climbed to about $3.54 per gallon on Tuesday, according to AAA. That’s the highest level seen since mid 2024 and marks a 21% increase from a month ago.
Gas prices began surging last week after the U.S.-Israeli strike on Iran and the ensuing conflict crippled the key Strait of Hormuz passageway, leading to the biggest oil supply disruption in history. Gas prices last week saw their largest three-day jump since Hurricane Katrina in 2005, according to an analysis from Bespoke Investment Group.
Before this month’s surge, the national average gas price had fallen to lows going back to 2021, according to AAA. Prices are still well off highs seen in the aftermath of the Russian invasion of Ukraine in 2022, data shows.
