Average US gas prices reach $3.70 — up almost 24% since start of Iran war

Gas prices in the United States have reached an average of $3.70 per gallon today, as reported by AAA. This marks an increase of nearly 24% since the war in Iran started on February 28. Oil prices have remained around $100 a barrel this week due to rising tensions in the Middle East. On Friday, Brent futures rose by 2.67%, closing at $103.14 per barrel, while US crude oil went up by 3.11%, finishing at $98.71 per barrel. The Strait of Hormuz, which is crucial for 20% of the world’s crude oil supply, has been effectively shut down since the conflict began. This closure has stopped oil tankers from moving in the area, disrupting the oil trade from the Middle East's rich nations. The situation in Iran poses a challenge to President Donald Trump’s economic goals of reducing gas prices, which had fallen below $3 a gallon in December for the first time since 2021. Additionally, the cost of groceries, another area where Trump aims to lower prices, might rise due to increased shipping expenses and higher fertilizer costs, according to several analysts. Furthermore, airline ticket prices have also increased because of the higher fuel costs.