Gas Prices Are Now Above $4 Amid the Iran War: How High Will They Go From Here?
If you’ve spent any time at a gas pump recently, you’ve also spent a lot of something else – money. That’s because average gas prices in America have skyrocketed past $4 per gallon for the first time since 2022 thanks to the ongoing war in Iran and the geopolitical shockwaves it has sent throughout the global economy and energy markets.
As of this writing, AAA is reporting that the national average gas price is currently $4.52, making it hard not to stress about paying at the pump – and even harder not to worry about how much you’ll be paying this summer.
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How Did Gas Get So Expensive?
You may have found yourself hearing about the Strait of Hormuz lately. It’s a narrow waterway in the Middle East through which approximately one-fifth of the world’s oil supply travels. Passage through the Strait has become severely disrupted thanks to the ongoing war with Iran, which has in turn made fuel prices extremely volatile. Oil costs spike, and then refineries and wholesalers increase their prices. Consumers then find themselves paying more and more at the pump.
One year ago, the average gas price in the United States was $3.16. That average has now leapt to $4.52. Given that extraordinary price spike, it makes sense to wonder: How high will gas prices go from here?
How Much More Could You Pay at the Pump?
Periods of geopolitical conflict can spike gas prices far higher than what we are paying at the pump now. For example, as Car Parts reported, gas prices cleared $5 in 2022 during the Russia-Ukraine war. At the time, Russia provided the European Union with 40% of its crude oil. The war disrupted that oil flow, and the global energy markets responded to that disruption with higher fuel prices.
This conflict in the Middle East could create similar pressure on the oil markets, specifically because of supply-line disruptions in the Strait of Hormuz. Time reported that if the Iran war carries on throughout the entire summer of 2026, oil prices could hit a record cost of $200 per barrel. What does that mean for your wallet? At $200 per barrel, you could be spending a whopping $7 per gallon at the pump.
Think of it like this: The average car’s gas tank in America holds 12 to 16 gallons of gas, per Edmunds. At the current price of $4.51 per gallon, it costs roughly $54.12 to $72.16 to fill a tank. If gas prices were to hit $7 per gallon by August? That would cost you $84 to $112 to fill your tank and keep you on the road.
The Bottom Line
The longer the Iran war continues, the more steeply gas prices in America could climb. While it’s always possible the war could come to an end soon, you may want to begin saving a bit more each month for the potentially shocking gas prices to come.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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