Gasoline prices in the Austin-San Antonio area have jumped more than $1 per gallon in the past month as the U.S.-Israeli war with Iran continues driving up the price of oil — the single biggest component in pump prices.
Nationwide, the average price late Tuesday hit $3.85, a level not seen since 2023.
With the war nearing its third week, crude prices continued to rise Tuesday, with West Texas Intermediate closing at $96.21 per barrel, up 2.9% for the day, while Brent crude, the international benchmark, climbed 3.2% to $103.42.
Drivers across Texas were paying an average $3.55 per gallon by late Tuesday, according to data from price-tracking site GasBuddy. That’s $1.09 more than a month ago.
In Austin, the average price for regular unleaded hit $3.64 per gallon Tuesday night, up 44.2 cents from a week ago and nearly $1.09 higher than a month ago, GasBuddy data showed.
San Antonio drivers have seen even steeper increases, with Tuesday’s $3.64 average up 46.6 cents from a week ago and nearly $1.12 from a month ago.
GasBuddy petroleum analyst Patrick De Haan said pump prices are heading higher, a move he called a “price hike due to Iran situation.”
The U.S.-Israeli war with Iran has essentially stopped tanker traffic through the Strait of Hormuz — one of the world’s most critical energy chokepoints. On a typical day, ships carrying about one-fifth of the world’s oil pass through the narrow waterway, but the conflict has effectively shut it down, trapping much of that supply.
Some analysts have warned oil prices could climb as high as $150 per barrel if the disruption drags on, which would push prices even higher for drivers, increase inflation and drive up other costs across the U.S.