With war in Iran in its fourth week, gas prices in a dozen U.S. states have shot above $4 per gallon as of Wednesday, according to AAA data. Just a month ago, the national average was under $3.
AAA’s data showed that the national average was creeping closer to $4 on Wednesday at $3.983. That was up from $3.977 on Tuesday and $3.842 last Wednesday. Prices were lower last year too, with AAA recording a national average of $3.139 last March.
While the national average remained just a hair below $4, 12 states and the District of Columbia had per-gallon averages over $4, and three even had averages over $5. Here’s where a gallon of gas was post expensive in the U.S. Wednesday, per AAA:
- California: $5.831
- Hawaii – $5.320
- Washington – $5.298
- Oregon – $4.871
- Nevada – $4.831
- Arizona – $4.623
- Alaska – $4.559
- Idaho – $4.215
- Illinois – $4.228
- Washington D.C. – $4.108
- Indiana – $4.075
- Michigan -- $4.060
- Utah – $4.041
President Donald Trump announced that the U.S. had joined Israel to strike Iran in late February, resulting in continued conflict in the region. This conflict has impacted the flow of ships through the Strait of Hormuz off the Iranian coast – a major transportation route for oil.
Since the start of the conflict, gas prices have shot up rapidly in the U.S., and experts have warned that costs for other goods might go up, especially if fighting continues. Trump has said that the U.S. and Iran are working on peace talks, but Patrick De Haan, the chief petroleum analyst for Gas Buddy, noted in a Wednesday interview with Audacy that Iran has denied being involved in talks.
“Based on what I’m seeing I think that there are some level of discussion happening, that Iran is probably very, has very little incentive to do much,” De Haan told Tommy Tucker of Audacy station WWL.
He explained that traders consider every subtle change in the situation and that it all could impact oil prices. For example, news that talks have ended could make prices go up. However, AAA said that last week’s announcement by the White Houset that it would release 172 million barrels of oil from its strategic reserves over four months had “no immediate relief on the oil market.”
“I think at this point there’s no limit, but I’m thinking about downside now,” De Haan said when Tucker asked how high prices could go. “So, a little bit of light at the end of the tunnel.”
