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Gas Prices Push Toward $4 Nationally as War Jolt Drives $5 Pumps in the West

Analysts warn the surge will squeeze households, raising near‑term inflation.

Overview

  • AAA data show the U.S. average is nearing $4 a gallon, a roughly three‑year high after a near $1 jump in a month.
  • About 18 states logged month‑over‑month increases of more than $1 per gallon, with the largest spikes in Arizona, New Mexico, Colorado, Illinois, Indiana, and Kentucky.
  • California’s average sits around $5.70, Washington and Hawaii top $5, and Las Vegas stations have posted prices as high as $5.19 with the local average near $4.81.
  • Prices are being driven by the Iran war’s risk to the Strait of Hormuz that carries roughly one‑fifth of global oil, compounded by refinery issues and seasonal fuel blend shifts.
  • Federal steps include a 172 million‑barrel SPR release and a temporary Jones Act waiver, though relief has been limited as economists flag a near‑term lift to inflation and some analysts see $4 nationwide within days.