Gas prices top $4 a gallon as Iran war triggers global oil shock

Fuel costs surge more than 30% since the start of the U.S.-Israeli conflict with Iran.

Mar. 31, 2026 at 5:51pm

Got story updates? Submit your updates here. ›

An extreme aerial view of a vast, densely packed array of oil tankers and cargo ships in the Strait of Hormuz, their hulls and decks forming a complex, geometric pattern that conveys the scale and importance of this critical maritime chokepoint.The closure of the Strait of Hormuz by Iran has disrupted the global flow of oil, triggering a surge in fuel prices and a major economic crisis.NYC Today

Gas prices in the United States have topped $4 per gallon on average, crossing the milestone for the first time in nearly four years. The price hike comes just weeks after the U.S.-Israeli war on Iran set off a global oil shock, prompting a surge in fuel costs. The Middle East conflict led to Iran's closure of the Strait of Hormuz, a critical maritime trading route that facilitates the transport of about one-fifth of the world's oil supply.

Why it matters

The current oil crisis has surpassed the combined effect of worldwide energy shocks in the 1970s, posing a 'major, major threat' to the global economy. As a net exporter of petroleum, the U.S. is not immune to the ripple effects of this crisis, which has driven crude oil prices to hover around $104 a barrel.

The details

Prices at the pump have soared more than 30% since the war began on Feb. 28, according to AAA data. Fuel costs last exceeded $4 a gallon in August 2022 following the Russian invasion of Ukraine. Crude oil is the main ingredient in auto fuel, accounting for more than half of the price paid at the pump. The Trump administration has announced plans to release 400 million barrels of oil from the nation's emergency reserve, the largest oil release in the 32-nation International Energy Agency's history.

  • Gas prices topped $4 per gallon on average in the U.S. on March 31, 2026.
  • The U.S.-Israeli war on Iran began on February 28, 2026.
  • Fuel costs last exceeded $4 a gallon in August 2022 following the Russian invasion of Ukraine.

The players

Fatih Birol

The executive director of the International Energy Agency (IEA), who warned that the current oil crisis has surpassed the combined effect of worldwide energy shocks in the 1970s and poses a 'major, major threat' to the global economy.

Donald Trump

The former U.S. president, who has announced plans to release 400 million barrels of oil from the nation's emergency reserve, the largest oil release in the IEA's history. Trump has also eased sanctions on Russian oil and suspended a key regulation of domestic oil transport, and sought to restore tanker traffic in the Strait of Hormuz.

Got photos? Submit your photos here. ›

What they’re saying

“The current oil crisis had surpassed the combined effect of worldwide energy shocks in the 1970s.”

— Fatih Birol, Executive Director, International Energy Agency

“No country would be 'immune to the effects of this crisis if it continues to go in this direction.'”

— Fatih Birol, Executive Director, International Energy Agency

What’s next

The Trump administration is set to carry out the second-largest-ever delivery from the nation's emergency reserve, which will make up nearly half of the IEA's planned release of 400 million barrels of oil.

The takeaway

This crisis highlights the vulnerability of the global economy to disruptions in oil supply, especially in the aftermath of geopolitical conflicts. It underscores the need for countries to diversify their energy sources and invest in renewable alternatives to mitigate the impact of such shocks on consumers and businesses.