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U.S. Gasoline Tops $4 Per Gallon, Highest Since 2022 Amid Iran War

U.S. gasoline prices have reached an average of $4.018 per gallon, the highest since 2022, primarily due to supply shocks from the U.S. and Israeli attacks on Iran in late February. Diesel prices have also surged past $5 per gallon, increasing by over 40%, with significant implications for transportation and goods movement. Officials, including the EPA and Vice President JD Vance, have acknowledged the crisis and are implementing measures to address supply issues, while Vance stated the price hike is temporary. Experts warn that rising diesel costs will have delayed but widespread economic effects in the coming months. Oil prices have jumped over 50% since the conflict, with Brent crude heading for a record monthly gain.

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U.S. Gasoline Tops $4 Per Gallon, Highest Since 2022 Amid Iran War

U.S. gasoline prices have surged above $4 per gallon for the first time in over three years, averaging $4.018 in March 2025, as the conflict with Iran disrupts oil supplies and drives up costs.

Price Surge Details

  • Gas prices hit $4.018 nationally, the highest since August 2022, according to AAA.
  • Prices have increased over 30% since the U.S. and Israel attacked Iran in late February.
  • Diesel prices crossed $5 per gallon on March 17, rising more than 40% pre-conflict.

Market and Economic Impact

  • Oil prices surged over 50% since the war began; Brent crude is poised for a record monthly gain since 1988.
  • David Doyle of Macquarie Group forecasts a 25% monthly gas price increase in March, the largest since October 1990.
  • Higher diesel costs, critical for trucking and freight, threaten broader economic ripple effects.

Official Responses

  • EPA Administrator Lee Zeldin warned of potential fuel supply disruptions and is temporarily easing regulations to boost supplies.
  • Vice President JD Vance described a "rough road ahead" but assured consumers the spike is temporary and prices will fall after the war ends.

Expert Warnings

  • Andy Lipow of Lipow Oil Associates noted that full diesel price impacts are yet to materialize and will affect the economy over the next few months.
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