❓WHAT HAPPENED: U.S. gas prices have hit their highest level since the middle of former President Joe Biden’s term. According to AAA’s national average gasoline price, the cost per gallon hit $4.018 on Tuesday, March 31, 2026.
👤WHO WAS INVOLVED: Former President Joe Biden, President Donald J. Trump, American consumers, the Islamic Republic of Iran, Qatar, Bahrain, the United Arab Emirates (UAE), and Saudi Arabia.
📍WHEN & WHERE: The price per gallon of gasoline hit $4.018 on Tuesday, March 31, 2026.
🎯IMPACT: The last time the average price per gallon of gasoline crossed $4.00 was in August 2022, after reaching over $5.00 in June of that year.
U.S. gas prices have hit their highest level since the middle of former President Joe Biden‘s term. According to AAA’s national average gasoline price, the cost per gallon hit $4.018 on Tuesday, March 31, 2026.
The last time the average price per gallon of gasoline crossed $4.00 was in August 2022, after reaching over $5.00 in June of that year. Notably, the spike in prices at the time was due to the sidelining of refinery workers during the COVID-19 pandemic and the subsequent surge in gasoline demand when pandemic restrictions were lifted—creating an environment of low supply and sustained high consumer demand.
In the current environment, the price spike is directly tied to the ongoing U.S. military operation against the Islamic Republic of Iran. Sporadic Iranian attacks on oil tankers and fears over the possible laying of sea mines in the Strait of Hormuz have resulted in Lloyd’s of London essentially suspending insurance for international shipping moving through the critical waterway. This has effectively closed off oil and gas shipments from Qatar, Bahrain, the United Arab Emirates (UAE), and—in part—Saudi Arabia to the rest of the world.
Concerningly, the sudden drop in global oil output due to the closure of the strait has left Europe, Asia, and Australia facing a fuel and energy crisis, with emergency reserves quickly running out. The global nature of oil pricing also means the United States—a net oil exporter—is not unaffected by the price spike. For President Donald J. Trump, the price surge has played a significant part in his collapsing voter approval numbers.
America exports most of its high-value “light sweet crude,” which fetches top dollar on international markets, and imports heavier, less expensive “heavy sour crude.” It should be noted that American refineries are designed to handle heavy sour crude, and not light sweet crude, and that the exchange is ultimately more profitable for the United States.
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