Iran Conflict Sparks Global Gas Price Surge: US Average Hits $3.60, No State Below $3

Gasoline prices are soaring worldwide following the February 28 Iran conflict, which has effectively choked off oil flows through the critical Strait of Hormuz. The U.S. national average has skyrocketed to $3.60 per gallon—a 20% monthly surge and the highest level since mid-2024—after a staggering 35-cent jump in just one week. For the first time since 2023, not a single U.S. state averages below $3 per gallon, with European markets also reeling from spikes of up to 30% in a single week.

Gas Prices Every State: Gas Price USA And Gasoline Prices Today

Gasoline Prices Today: What’s Behind the Surge

The Strait of Hormuz — a narrow waterway south of Iran that normally carries roughly 20% of the world’s oil — dropped to a near-trickle once the conflict broke out. The IEA called it “” and noted that oil flows fell from 20 million barrels a day to almost nothing. Brent crude surged from around $70 a barrel in late February to over $110 at the height of the escalation, and the IEA then agreed to release 400 million barrels from strategic reserves — the largest emergency release in history.

Gas prices last week also saw their largest three-day jump since Hurricane Katrina in 2005, according to Bespoke Investment Group. Before this surge, the gas price in USA had been sitting at lows not seen since 2021 — so the jump has caught a lot of drivers off guard.

AAA had flagged the seasonal timing as a compounding factor. AAA stated:

Analysts at Oxford Economics also weighed in on how long the volatility might last. Oxford Economics analysts stated:

Gas Prices Every State — Who Got Hit Hardest

Kansas, which still sat at $2.96 on Tuesday, jumped five cents to $3.01 by Wednesday morning and became the last state to cross the $3 mark. Midwest states took the worst of it right now — Indiana shot up 68 cents (24%) and Ohio climbed 66 cents (23.6%). Michigan added 59 cents (19.8%) and Florida saw a 61-cent jump at 21.2%. Western states, though more expensive overall, actually logged the smallest percentage increases. Hawaii was only up 14 cents (3%) and Washington added just 26 cents (6%). California still leads the nation at $5.20 per gallon, while Kansas, Oklahoma, Missouri, and Arkansas sit at the cheapest end, all around $2.97–$3.01.

Ravi Ramamurti, distinguished professor of international business and strategy at Northeastern University, stated:

Gasoline Price Europe and the Gas Price USA Outlook

Gas prices in the US don’t look set to fall quickly even if crude stabilizes, since retailers tend not to pass savings down to drivers right away. At the time of writing, the gas price USA outlook ties directly to how long the Strait disruption lasts, and also to Spring Break demand, which typically pushes fuel use higher each year at this point in March.

Senate Minority Leader Charles E. Schumer stated:

Gasoline price in Europe tells a similar story. The average Euro 95 price across the 27 EU member states sits at around €1.574 per liter right now, with Germany topping the list at roughly €2.08 per liter and the Netherlands close behind at around €2.07. Bulgaria averages just €1.23–€1.31 per liter at the cheaper end. The same underlying supply shock shapes both the gasoline price Europe situation and the wider gas price USA picture, and analysts on both sides of the Atlantic warn that further increases are possible if the Strait of Hormuz doesn’t reopen soon.