US Gasoline Prices Surpass $3.50 Per Gallon

Ongoing Israel-US war with Iran stokes supply concerns, driving up prices at the pump

Published on Mar. 11, 2026

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The national average retail price of gasoline in the United States has crossed $3.50 per gallon, the highest level since May 2024, according to data from price tracking services AAA and GasBuddy. The rise in prices is attributed to disruptions to Middle Eastern oil exports through the Strait of Hormuz due to the ongoing conflict between Israel and Iran.

Why it matters

Gasoline prices have a significant impact on consumer spending and the overall economy. Higher prices at the pump can lead to reduced discretionary spending in other areas, potentially slowing economic growth. The conflict between Israel and Iran has disrupted a critical global oil chokepoint, contributing to the price surge.

The details

The national average retail price of gasoline crossed the $3.50 per gallon threshold this week, reaching its highest level since May 2024. This price increase is attributed to disruptions to Middle Eastern oil exports through the Strait of Hormuz, a critical global oil chokepoint, due to the ongoing conflict between Israel and Iran.

  • The national average retail price of gasoline crossed $3.50 per gallon this week.

The players

AAA

A non-profit organization that provides automotive and travel services, including gasoline price tracking.

GasBuddy

A technology company that provides real-time gasoline price information and data to consumers and businesses.

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The takeaway

The surge in gasoline prices driven by the Israel-Iran conflict highlights the vulnerability of the global energy system to geopolitical tensions. Consumers and policymakers will need to closely monitor the situation and consider strategies to mitigate the economic impact of rising fuel costs.