US gasoline prices rise above $4 a gallon as Iran conflicts unnerves global energy markets

US average gasoline prices were above $4 a gallon on Wednesday (April 1) as the U.S.-Israeli war on Iran roils global energy markets.

The $4 per gallon milestone was last reached in August 2022 after Russia invaded Ukraine. Some analysts have called this level a psychological barrier for consumers. Prices for crude oil used to make gasoline have also surged, along with prices for many goods, since Iran blocked most shipping through the Strait of Hormuz.

US households were already squeezed by rising costs even before gasoline prices started to rise. This has created a political headache for President Donald Trump and his Republican Party's lawmakers campaigning to hold thin majorities in both houses of the U.S. Congress in November midterm elections.

Trump had vowed to lower energy prices and ramp up U.S. oil and gas production. So far, much of his second term has been marked by volatile markets, geopolitical turmoil and shifting policies on issues such as tariffs.

US national average retail gasoline prices have climbed about $1.06 a gallon, or 36%, since the U.S. and Israel attacked Iran at the end of February. The monthly increase in retail gasoline prices in March is the steepest in GasBuddy data going back to 2000.

-Reuters