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U.S. Gas Prices Hit $4.06 Average After Iran Conflict Disrupts Oil Flows

Analysts expect elevated prices to persist into summer.

Overview

  • The national average for regular gas rose to about $4.06 on Wednesday, one day after crossing $4 for the first time since 2022, according to AAA.
  • California now averages $5.89 a gallon with several counties above $6, and Florida diesel set new state and Jacksonville records near $5.80.
  • The Iran war has curbed oil shipments through the Strait of Hormuz, and crude costs make up about half of what drivers pay at the pump.
  • Governments have launched emergency supply moves, including a 400 million barrel IEA release and U.S. SPR draws and shipping waivers, though experts say these steps replace only a small share of lost barrels.
  • AAA and market analysts say prices are likely to stay high into the summer as drivers shift habits and seasonal summer-blend fuel, which usually costs 10 to 15 cents more, adds further pressure.