As the war is on and off, and then off and on again in Iran, motorists are paying an average of $73 for a full 15-gallon tank of gasoline; an increase of about $22 from 2025's highest price last August.
In Midwest states including Michigan, Illinois, Ohio, Wisconsin and Minnesota, that's an 85 cent increase from one short week ago, with drivers in those states now paying an average of $4.87 per gallon for regular unleaded. This price is $1 more than this time last month and $1.65 more than this time last year.
And along with it, diesel fuel is skyrocketing, which will affect national transportation and farmers who need it to fill tractors. Diesel is up 50 cents a gallon in many places right on the cusp of planting season.
“It’s going to affect everybody,” New York farmer Doug Dawson told CBS News. “Everything we eat, everything we wear, everything we buy. Either comes by boat, plane, train or truck — and sometimes it's three out of the four, so it'll be a trickle-down deal.”
The "double whammy" experts are warning about is that the war in Iran and the choke point at the Strait of Hormuz is driving down supply as summer demand increases. According to new data from the Energy Information Administration, gasoline demand increased last week from 9.05 million b/d to 9.10 million. At the same time, total domestic gasoline supply decreased from 228.4 million barrels to 222.3 million. Gasoline production also decreased last week, averaging 9.8 million barrels per day.
At the close of Friday’s formal trading session, the average cost of a barrel of oil was $101.94.
"Michigan drivers are feeling the squeeze as gas prices spike 85 cents in one week," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "Until oil prices ease and gasoline stocks rebuild, drivers may continue to feel pressure from higher prices at the pump."
AAA graphic of gas prices
AAA
As you can see in the AAA map above, big swaths of the country are paying nearly $5 a gallon these days. And that would be a bargain in California. Per AAA, the nation’s top 10 most expensive gasoline markets are California ($6.01), Hawaii ($5.64), Washington ($5.57), Oregon ($5.15), Nevada ($5.12), Alaska ($4.92), Arizona ($4.67), Illinois ($4.66), Michigan ($4.58), and Ohio ($4.46).
The nation’s top 10 least expensive gasoline markets are Oklahoma ($3.70), Kansas ($3.75), Georgia ($3.75), Mississippi ($3.77), Arkansas ($3.79), Louisiana ($3.80), Missouri ($3.83), North Dakota ($3.84), Texas ($3.85), and Alabama ($3.86).
Meanwhile, according to Politico, "Trump on Monday was reviewing Iran’s latest peace proposal, which arrived after he canceled his top negotiators’ planned trip to Pakistan for talks. He continues to maintain that a quick resolution to the war with an agreement to reopen the Strait of Hormuz is within reach."
WAYS TO SAVE MONEY ON GAS
Ways to Save on Gasoline
- Combine errands to limit driving time.
- Shop around for the best gas prices in your community.
- Consider paying cash. Some retailers charge extra per gallon for customers who pay with a credit card.
- Remove excess weight in your vehicle.
- Drive conservatively. Aggressive acceleration and speeding reduces fuel economy.
