Gas Prices Surge as U.S. War With Iran Enters Second Week

Ten days into the U.S. military campaign against Iran, Americans are beginning to feel

the economic effects as oil and gas prices climb sharply.

The national average price for gasoline rose to $3.47 per gallon on Monday, nearly 50 cents higher than just a week ago, according to AAA. Meanwhile, oil prices briefly surpassed $100 per barrel, the first time they have reached that level since Russia invaded Ukraine in 2022, before easing later in the day.

President Donald Trump downplayed the rising costs, describing them as a temporary setback tied to the conflict.

“I think it’s fine. It’s a little glitch. We had to take this detour,” Trump said in an interview on Sunday, while defending the U.S. military campaign against Tehran.

In a social media post later that night, Trump argued that the higher oil prices are a short-term consequence of addressing Iran’s nuclear threat.

The spike contrasts with Trump’s campaign pledge during the 2024 election to reduce gasoline prices to below $2 per gallon. Earlier this year, the president pointed to falling fuel costs as a major achievement of his administration.

In his State of the Union address on Feb. 24, Trump said gas prices had dropped significantly compared to earlier years.

“Gasoline, which reached a peak of over $6 a gallon in some states under my predecessor… is now below $2.30 a gallon in most states, and in some places $1.99,” Trump said at the time.

Experts warn prices may climb further

Energy analysts say the recent surge is being driven by instability in the Middle East and disruptions to global oil supply routes.

Patrick De Haan, a petroleum analyst at GasBuddy, said Americans are experiencing immediate “sticker shock” as prices react to rising oil markets.

“Gas stations are seeing their costs go up in real time,” De Haan told ABC News Live. “Over the next three days, gasoline prices could rise another 15 to 35 cents per gallon if nothing changes.”

Diesel prices could climb even faster, potentially rising 35 to 50 cents per gallon, pushing the national average close to $5 per gallon, he said.

Oil shipments disrupted

Roughly 20 million barrels of oil pass through the Strait of Hormuz each day, a key shipping route that has been disrupted by the expanding conflict.

Trump told Fox News that oil tankers should continue moving through the strait despite the risks.

“They need to show some guts,” he said.

However, several war-risk insurers have already canceled coverage for vessels operating in the area. Trump said the U.S. government may offer risk guarantees and could have the U.S. Navy escort tankers through the strait if necessary.

How long could prices stay high?

Analysts say the timeline remains uncertain on how long the price spike will last.

Trump initially estimated the conflict could last four to five weeks, though he has since said the timeline depends on conditions on the ground.

“I don’t know. I never predict,” Trump told ABC News. “All I can say is we are ahead of schedule.”

According to GasBuddy’s De Haan, the longer the conflict continues, the longer it could take for oil and gas prices to return to previous levels.

“Every day the situation continues,” he said, “could add several weeks to the recovery time.”