NEW YORK (AP) \u2014 U.S. gas prices jumped past an average of $4 a gallon for the first time since 2022 on Tuesday as the Iran war pushed fuel prices to soar worldwide.<\/p>\n
According to motor club AAA, the national average for a gallon of regular gasoline is now $4.02 \u2014 over a dollar more than before the war began. The last time U.S. drivers<\/a> were collectively paying this much at the pump was nearly four years ago, following Russia\u2019s invasion of Ukraine.<\/p>\n The price is a national average, meaning drivers in some states have been paying well over $4 a gallon for a while now. Prices vary from state to state due to factors ranging from nearby supply to differing tax rates.<\/p>\n Since the U.S. and Israel launched a joint war against Iran on Feb. 28, the cost of crude oil \u2014 the main ingredient in gasoline \u2014 has spiked and swung rapidly. That\u2019s because the conflict has caused deep supply chain disruptions<\/a> and cuts from major oil producers across the Middle East. <\/p>\n Motorists around the world<\/a> are also coping with higher gas prices due to the war. In Paris, for example, gas is at 2.34 euros per liter ($2.68), which is about $10.27 a gallon.<\/p>\n Expensive gas could drag on the economy and drive up other prices<\/p>\n Higher gas prices are impacting consumers and businesses as many households continue to face wider cost of living strains. And as drivers pay more to cover necessities like gas, many may be forced to cut their budgets in other places.<\/p>\n More expensive fuel can also push up other spending, from utility bills to the price of many goods consumers buy each day. <\/p>\n In the immediate future, analysts point to groceries, which have to be restocked frequently and could also see price hikes as businesses\u2019 transportation costs pile up. <\/p>\n But hauling other cargo and packages has also been impacted. The United Postal Service, for example, is seeking a temporary 8% added charge<\/a> on some of its popular products including Priority Mail.<\/p>\n U.S. diesel prices \u2014 the fuel used for many freight and delivery trucks \u2014 is now going for an average of $5.45 a gallon, up from about $3.76 a gallon before the war began, per AAA.<\/p>\n If the war drags on, it\u2019s possible that those prices could tick up even higher. Most<\/a> tanker movement in the key Strait of Hormuz<\/a>, where roughly one-fifth of the world\u2019s oil typically sails through, remains at a halt<\/a>. That\u2019s led to cuts from major producers in the region who have no way of getting their crude to market. Meanwhile, Iran, Israel and the U.S. have all struck oil and gas facilities, worsening supply concerns.<\/p>\n Reserves open in effort to cut prices<\/p>\n In a search for some relief, the International Energy Agency pledged to release 400 million barrels<\/a> of oil from emergency stockpiles of member nations. That includes the U.S.<\/a>, despite Trump initially downplaying the need for reserve oil. <\/p>\n The Trump administration has also eased sanctions to free up some oil from Venezuela<\/a>, and temporarily Russia<\/a>. The White House also says it\u2019s waiving maritime shipping requirements under a more than century-old law, known as the Jones Act<\/a>, for 60 days.<\/p>\n It\u2019s not yet clear if those efforts will bring relief for consumers. A lot of factors contribute to gas prices.<\/p>\n Refineries buy crude oil in advance, meaning some could be work with more expensive oil for a while, and it will take time for any new supply to trickle down to consumers. <\/p>\n And while steep crude prices are a leading driver behind today\u2019s surge, U.S. gas prices typically tick up a bit at this time of year. More drivers are hitting the road and trying to fuel up while they can, so there\u2019s higher demand. Warming weather also brings a shift to summer blend fuel, which is more expensive to produce than winter blend.<\/p>\n The US is an oil exporter, but it\u2019s still affected by global prices <\/p>\n The U.S., which is a net oil exporter, hasn\u2019t seen as stark a shock as other parts of the world that rely more heavily on fuel imports from the Middle East, notably Asia<\/a>. But that doesn\u2019t mean America is immune<\/a> to price spikes.<\/p>\n Oil is a globally-traded commodity. And most of what the U.S. produces is light, sweet crude \u2014 but refineries on the East and West coasts are primarily designed to process heavier, sour product. As a result, the country also needs imports.<\/p>\n