Average price of gas hits $4 as Iran war heats back up

Energy & Environment Average price of gas hits $4 as Iran war heats back up Comments: by Rachel Frazin - 07/20/26 9:31 AM ET Comments: Link copied by Rachel Frazin - 07/20/26 9:31 AM ET Comments: Link copied

NOW PLAYING

The average gasoline price in the U.S. has risen to $4 per gallon as the U.S.-Iran conflict escalates again.

According to AAA, the average price was exactly $4 on Monday, a number it had been creeping toward in recent days after the ceasefire between the U.S. and Iran fell apart.

That’s up from about $3.87 a week ago.

As the ceasefire ended, Iran began firing on oil tankers in the Strait of Hormuz, a key shipping lane for oil from the Middle East. About a fifth of the world’s oil flows through this channel during peacetime.

At the same time, the U.S. said it was imposing a blockade on the strait.

Ship traffic through the strait appears to have slowed. According to MarineTraffic.com, crossings of the waterway “remained limited” over the weekend.

These developments sent the price of oil, the main component in gasoline, upward in recent weeks.

After the now-dissolved ceasefire was announced, U.S. benchmark West Texas Intermediate crude futures were trading at as low as $67 per barrel, but they are trading at $82 a barrel as of Monday morning. International benchmark Brent Crude was trading at as low as $70 per barrel in the weeks after the ceasefire announcement but is now trading at about $88 a barrel.

If it holds, the rise in oil and gas prices could spell trouble for Republicans in the midterms as voters express concerns about affordability.