The national average price for a gallon of regular gasoline reached $4.28 on Thursday, September 10, according to data from AAA. This reflects a six-cent increase over a 24-hour period and a 13-cent rise over the past two days. The current average is $1.08 higher per gallon than at the same time one year ago.
The price increases follow an escalation in the six-month conflict between the United States and Iran. In recent days, U.S. forces have struck several Iranian oil tankers, while Iranian forces attacked ships and a U.S. base in Jordan on Tuesday, September 8. Additionally, Iran-backed Houthi rebels have set Saudi oil facilities ablaze and threatened shipping lanes in the Red Sea. These events have impacted the Strait of Hormuz, a waterway that carried approximately 20% of global oil supplies before the war.
Market prices for Brent crude, the international benchmark, rose above $100 per barrel on Wednesday and Thursday. While this is lower than the April peak of $126.41, it marks a shift from the period since 2022, when prices remained below the $100 threshold. The national average for diesel fuel reached a record high of $5.94 per gallon on Thursday.
Price levels vary significantly by geography. AAA reported that California had the highest average for regular gasoline at $5.89 per gallon on Thursday. Indiana recorded the lowest average in the country at $3.56 per gallon. Retail analyst Carol Spieckerman stated that higher fuel costs are contributing to price increases for groceries, airline tickets, and petroleum-based products.
The record-high diesel price of $5.94 per gallon impacts the freight and trucking industries. The near-shutdown of the Strait of Hormuz, which managed 20% of the world's oil before the war, creates a supply constraint. Because fuel is a foundational cost for production and distribution, these price changes are seen in areas such as airline tickets and grocery costs.
What happens next depends on the stability of global shipping lanes and the duration of the U.S.-Iran conflict. While Brent crude remains below its $126.41 April high, the continued attacks on tankers and Saudi facilities suggest ongoing volatility. There are currently no reported deadlines for a resolution to the conflict or specific dates for projected price decreases. Federal economic reports will likely reflect these energy costs in upcoming inflation data releases.