Gas prices cross $3: Iran tensions lift oil; drivers feel impact

Gasoline prices across the US have moved above $3 per gallon for the first time this year. The national average now stands at about $3.11 per gallon, according to data from AAA reported by the Associated Press. Prices rose by 11 cents overnight. The increase comes as oil markets react to rising tensions involving Iran. Investors fear that the conflict could affect oil supply from the Middle East, a key region for global crude production.

Crude oil rose 8.6% to $77.36 per barrel. Brent crude increased 6.7% to $81.29 per barrel, according to figures cited by WTOP. Oil prices usually rise when traders expect supply problems. Even the risk of disruption in major oil-producing regions can push prices higher. When crude oil becomes more expensive, gasoline prices often follow. Apart from geopolitical tensions, fuel prices are also rising due to seasonal factors. Refineries are now producing summer fuel blends. These blends cost more to make and are required during warmer months.

Higher gas prices can affect the wider economy. When drivers pay more for fuel, transportation costs increase. This can lead to higher prices for goods and services. Gas prices were as low as $2.85 per gallon in February, according to GasBuddy. The last time the national average went above $3 was in November 2025. Analysts say gasoline prices usually respond to oil price changes with some delay, so further increases are possible if crude remains high. President Donald Trump has previously said his administration helped lower fuel prices after he returned to office.