Economy
Gas Prices Hit $5 a Gallon Across America — Up 80 Cents in One Month Because of the Iran War
American drivers are now paying over $5 a gallon for regular gasoline in many areas — a surge of nearly 80 cents in just one month — as the Iran war and Strait of Hormuz closure continue to send energy prices to their highest levels in years.
NowCastDaily Business Desk | March 16, 2026 | Economy | 6 min read
The cause is unmistakable: the ongoing US-Iran war and Iran's closure of the Strait of Hormuz, through which approximately 20% of the world's daily oil supply flows. With no immediate resolution in sight and no allied nations yet committing to join a naval coalition to reopen the strait, energy markets are bracing for prices to go even higher.
How Bad Is It? By the Numbers
- Regular gasoline: $5.29/gallon in parts of Washington State (March 13)
- Diesel: just under $5/gallon nationally — up $1.34 from last month
- Regular gasoline nationally: up nearly 80 cents from a month ago
- Crude oil prices: rose to their highest level since July 2022 on Sunday
- EU energy ministers: met Monday in emergency session to address rising costs
Administration's Response: "It's Temporary"
Trump administration officials moved quickly Monday to reassure the American public that the price spike is temporary. Officials speaking publicly stressed that the Strait of Hormuz situation is being actively addressed and that prices will normalize once the conflict is resolved.
However, the administration's efforts to rally allies to join a naval coalition to reopen the strait have so far come up empty. President Trump publicly criticized allies Monday who have rebuffed his calls to send warships, and as of Monday afternoon, no country has committed to joining the coalition.
Beyond Gas: The Ripple Effects
The energy price surge is already cascading across the broader economy. An escalating war now threatens everything from food prices to the cost of airline tickets, according to reporting from Bloomberg and ABC News. Airlines, trucking companies, and food distributors — all of which are highly sensitive to fuel costs — are warning of price increases across their services.
The EU, which imports significant volumes of oil that transit the Strait of Hormuz, held emergency ministerial talks Monday. Lithuania has gone further, publicly suggesting that the EU should consider direct military involvement in securing the strait — a proposal that would represent a dramatic escalation of European engagement in the conflict.
When Could Prices Come Down?
Energy analysts say relief at the pump is unlikely until one of three things happens:
- A ceasefire agreement between the US-Israel coalition and Iran
- A successful naval operation to forcibly reopen the Strait of Hormuz
- A significant increase in non-Gulf oil production from the US, Canada, or other producers to compensate
None of these outcomes appears imminent. With Iran now publicly denying it sought a ceasefire and no allied coalition materializing to reopen the strait, the energy markets are preparing for prices to remain elevated — or climb further — in the weeks ahead.
Sources: NPR — Gas Price Data, March 16 | CNN Iran War Live Updates
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