Gas Prices Surge 21% as Inflation Rises Due to Iran War

March consumer price index shows highest annual jump since 2024 amid energy supply disruptions

Apr. 14, 2026 at 1:21am

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An abstract illustration composed of overlapping triangles and circles in shades of red, blue, and yellow, conceptually representing the volatility and uncertainty of rising inflation and energy prices.Soaring energy costs and supply chain disruptions drive the highest inflation in years, straining household budgets.Washington Today

Inflation in the United States spiked in March, driven by a 21.2% jump in gasoline prices and a 10.9% rise in overall energy costs. The price increases were largely attributed to the U.S.-Israeli war with Iran, which has disrupted global oil supply through the closure of the Strait of Hormuz. Despite a ceasefire, Iran still maintains control over the vital shipping chokepoint, causing the largest supply disruption in the history of the global oil market.

Why it matters

The sharp rise in inflation, particularly for energy and transportation costs, is emerging as a major political issue ahead of the 2026 midterm elections. Democrats are blaming President Trump's policies, including the unpopular war with Iran, for the affordability crisis facing American households. The White House has acknowledged short-term disruptions but argues the economy remains on a solid trajectory overall.

The details

According to the latest consumer price index data from the Bureau of Labor Statistics, prices jumped 0.9% in March compared to the previous month - up from a 0.3% increase in February. Prices for all items, including food, energy, shelter and other commodities, rose 3.3% from a year ago, the highest annual jump since May 2024. Fuel costs were the primary driver, with gasoline and fuel oil together rising 10.9% in March compared to February. Airfare also spiked 2.7% due to higher jet fuel prices.

  • President Donald Trump launched the joint war in Iran with Israel on Feb. 28.
  • As of Friday, Americans were paying $4.15 on average nationwide for a gallon of regular gas, up from less than $3 prior to the war.
  • Iran is still controlling the Strait of Hormuz, with only 10 oil tankers transiting the waterway on Tuesday and just one on Wednesday, compared to roughly 140 vessels daily before the conflict.

The players

Donald Trump

The President of the United States who launched the joint war with Israel against Iran.

Ken Martin

The Chair of the Democratic National Committee, who blamed Trump for higher inflation and the affordability crisis facing American households.

Kush Desai

The White House senior deputy press secretary, who acknowledged short-term disruptions from the war but argued the economy remains on a solid trajectory overall.

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What they’re saying

“Trump promised to 'lower prices on Day One,' and instead he waged an unhinged trade war and started an unpopular war with Iran — and what have Americans gotten in return? Nothing except even higher prices. Americans are sick and tired of this president putting his own interests first and using their hard-earned dollars to fund his war instead of making health care more affordable or expanding access to child care.”

— Ken Martin, Democratic National Committee Chair

“Although gas and energy prices are seeing volatility, prices of eggs, beef, prescription drugs, dairy, and other household essentials are falling or remain stable thanks to President Trump's policies. As the Administration ensures the free flow of energy through the Strait of Hormuz, the American economy remains on a solid trajectory thanks to the Administration's robust supply-side agenda of tax cuts, deregulation, and energy abundance.”

— Kush Desai, White House senior deputy press secretary

What’s next

The White House has said it is working to mitigate the impact of the supply disruptions caused by the war with Iran, but it remains unclear how long the high energy prices and inflation will persist.

The takeaway

The sharp rise in inflation, particularly for gasoline and other energy costs, has become a major political liability for the Trump administration. The affordability crisis facing American households is emerging as a key issue ahead of the 2026 midterm elections, with Democrats seeking to capitalize on voter frustration over rising prices.