US Gasoline Prices Surge to $4 a Gallon Amid Iran War

JAKARTA - Almost six months into the United States' war with Iran, its economic pressure is increasingly felt at home. Regular gasoline prices have reached 4 US dollars per gallon, while airfare and energy costs have also risen.

Anadolu Agency quoted Friday, August 14, saying the average price of regular gasoline in the US reached 4.006 US dollars per gallon on August 10, based on data from the US Energy Information Agency or EIA.

The figure reversed from earlier estimates. In January, the EIA predicted that US gasoline prices would fall 6 percent throughout 2026. The latest projection puts the average price this year at 3.78 US dollars per gallon, up from 3.10 US dollars in 2025.

Pressure is also seen from inflation data. Although gasoline prices fell in July, the level was still 24.6 percent higher than a year earlier. Overall energy prices rose 14.7 percent.

U.S. annual consumer inflation hit 3.4 percent in July, up from 2.4 percent in January before the war began.

In the Washington metropolitan area, gas prices are up 24.8 percent in a year. In Dallas-Fort Worth, the increase is 19.8 percent.

The impact does not stop at gas stations. Higher crude oil prices also increase the cost of truck transportation, shipping, and production. These costs could eventually drive up the price of food and other goods.

However, war is not the only factor driving the price increase. Tariffs, supply constraints, and other economic factors also affect inflation.

The aviation sector was also affected. The aircraft tariff index in July increased by 25.5 percent compared to the previous year.

Anadolu Agency said jet fuel prices in the US Gulf Coast market also averaged $3.40 per gallon in July, up almost 68 percent from January. Aircraft shortages, high demand, capacity constraints, and reduced competition also affect tariffs.

Energy cost pressures are now also a political problem for President Donald Trump's administration.

Vice President JD Vance even put energy prices as Washington's top priority in the conflict.

"The number one goal is to keep oil and gas prices affordable for Americans across the country," Vance told Fox News.

He said ensuring Iran does not have nuclear weapons is "goal number two".

A Pew Research Center survey from March 23-29 showed 69 percent of Americans worry an Iran war would raise gas and fuel prices. The concern includes 79 percent of Democrats and 59 percent of Republicans.

An Ipsos survey in July also found 58 percent of Americans disapprove of a military strike against Iran, while 37 percent support it.

Another Ipsos survey from July 29 to August 3 showed the Democrats were eight points ahead of the Republicans as the party most trusted to handle the cost of living. In January, the two parties were almost even.

The Strait of Hormuz is one of the key points in energy price pressure. In 2024, about 20 million barrels of oil pass through the line every day, equivalent to more than a quarter of the world's oil trade by sea and about a fifth of global oil consumption.

The restrictions on shipping have kept markets factoring in the risk of conflict into oil prices. Brent was trading around $88 a barrel on Friday, while U.S. West Texas Intermediate or WTI was around $82.

Although the US before the war only imported a small amount of oil directly through Hormuz, the price of oil is still determined by the global market. Supply disruptions from the Gulf region can therefore still affect the prices paid by refineries and US consumers.

After Iran's nuclear program for months became Washington's main reason for the conflict, the price posted at gas stations is now one of the most direct impacts of the war felt by US voters.