âť“WHAT HAPPENED: Gas prices have surged to $3.32 per gallon, the highest since President Donald J. Trump’s return to office, following U.S.-led strikes on Iran.
👤WHO WAS INVOLVED: President Trump, Treasury Secretary Scott Bessent, Interior Secretary Doug Burgum, and analysts like Torbjorn Soltvedt and Matt Wright.
đź“ŤWHEN & WHERE: Strikes began Saturday in Iran, with immediate impacts on global oil markets and U.S. gas stations.
đź’¬KEY QUOTE: “I don’t have any concern about it. They’ll drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit.” – President Trump
🎯IMPACT: Rising gas prices strain household budgets and businesses, while the global oil market faces further uncertainty amid Middle East tensions.
Gasoline prices have risen to $3.32 per gallon, their highest level since September 2024, as the Iran war disrupts global energy markets. The increase follows a U.S.-led military operation in Iran that has killed the Islamic Republic’s Supreme Leader, Grand Ayatollah Ali Khamenei, and several senior Iranian officials. The strikes, along with Iran’s retaliatory attacks on Israel and U.S.-aligned Middle Eastern countries, have disrupted oil and natural gas flows and heightened concerns about supply shortages.
The recent spike marks a sharp reversal from just a few months ago, when fuel prices were significantly lower. By late December 2025, the national average for gasoline had fallen to about $2.75 per gallon, the lowest level since 2021, according to GasBuddy. Some stations in certain states were even selling fuel for under $2 per gallon, reflecting strong U.S. oil production, stable global markets, and robust refinery output. That trend has quickly changed now that war has broken out.
In addition to launching strikes on Israeli and Gulf targets, Iranian attacks have also hit regional energy infrastructure. For instance, Saudi authorities were forced to shut down operations at the massive Ras Tanura oil refinery after drone attacks sparked fires, raising fears of broader disruptions to global oil supply. Brent crude prices have already surged toward $100 per barrel as traders factor in the risk of further disruptions.
The Trump administration says it is taking steps to address rising energy costs and stabilize supply.
President Donald J. Trump announced that the U.S. Development Finance Corporation will provide risk insurance and guarantees to protect maritime trade in the Gulf, especially energy shipments. Treasury Secretary Scott Bessent said the administration is considering additional measures to stabilize supply flows, while Interior Secretary Doug Burgum stated that “everything is being considered,” including tapping U.S. crude reserves and adjusting fuel-blending requirements.
The U.S. Navy is also prepared to escort tankers through the Strait of Hormuz if necessary. Some analysts are skeptical. Energy analyst Matt Wright has questioned whether escorting vessels is practical given the large number of ships passing through the strait each day.
Trump downplayed concerns about the impact of higher gas prices, saying, “I don’t have any concern about it. They’ll drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit.”
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