US gas prices see largest one-day increase since 2005

Gas prices in the United States jumped by 11 cents to an average of $3.11 per gallon, according to the latest report from AAA. This increase is the largest seen in one day since Hurricane Katrina struck in 2005. The rise in energy prices is linked to attacks by the US and Israel on Iran, which led to the closure of the vital Strait of Hormuz. In response, Iran has targeted the oil infrastructure of its US-friendly neighbors, including the United Arab Emirates, Kuwait, Qatar, and Saudi Arabia, the biggest oil exporter globally. This situation has unsettled oil markets around the world. On Tuesday morning, US oil prices rose by 7% to $76, following a 6% increase on Monday. The average price of $3.11 on Tuesday ended a three-month period where prices remained below $3 per gallon, which started on December 1. Additionally, this price is one cent higher than it was a year ago and is about the same as it was during Joe Biden’s last full day in office in January 2025.