US gas prices top USD 4 again as Iran conflict squeezes oil supplies

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US petrol prices have climbed above USD 4 a gallon again after renewed fighting between Washington and Iran disrupted oil flows. The increase is reviving pressure on motorists and could become a sharper political issue before the midterm elections.

India Today World Desk

Newyork,UPDATED: Jul 21, 2026 02:50 IST

US gas prices rose back above USD 4 a gallon on average on Monday, as the latest escalation in Washington's conflict with Iran renewed pressure on global fuel supplies. According to AAA, the national average price for a gallon of regular petrol is now just over USD 4, up about 13 cents from a week ago and much higher than the USD 3.14 average seen at this time last year.

The rise follows fresh disruption in the Middle East after the interim agreement between Washington and Tehran collapsed. That deal, reached last month, had briefly cooled energy prices by aiming to end the fighting and restore traffic through the Strait of Hormuz. But with the US intensifying airstrikes against Iran on Monday and Iran responding with attacks on American allies in the region, oil flows have slowed again.

The war involving the US, Israel and Iran has pushed the world into an energy crisis, with crude oil prices rising sharply because of supply and production disruptions across the Middle East. Crude oil is the main ingredient in petrol and makes up most of the price consumers pay at the pump, although there is usually a delay because refineries buy oil in advance and deliveries take time. On Monday, Brent crude, the international benchmark, moved between about USD 86 and USD 91 a barrel, compared with around USD 72 at the start of July.

Prices continue to vary widely across the US. California had the highest average on Monday at nearly USD 5.50 a gallon, followed by about USD 5.42 in Hawaii and USD 5.01 in Washington state, AAA said. In contrast, averages were closer to USD 3.35 in Indiana and USD 3.57 in Mississippi. Prices differ from state to state because of factors such as nearby supply and different tax rates.

Oil prices have remained volatile throughout the war. In March, Brent climbed to nearly USD 120 a barrel. US gas prices went on to hit a four-year record of more than USD 4.50 a gallon in May. The national average then fell to as low as USD 3.79 earlier this month before turning higher again.

The latest rise has added to frustration for drivers. "I am down to the last drops of gas," said Litza Mavrothalasitis, a Chicago resident, while filling her tank on Monday. She said she was shocked by how much prices had gone up again. "It was just unbelievable. I thought we were finally settling down." Jacob Fisher, another Chicago resident buying petrol on Monday, said thinking about the reasons behind the higher fuel costs "makes me angry". "Senseless war in Iran, and our current administration is fueling a lot of this - and it's terrible," Fisher said. "It is not serving the American people. Nor does it serve anywhere in the entire world."

Attention is now on the White House. Before joining the war in late February, President Donald Trump had highlighted low gas prices and last month voiced frustration that they were not falling as quickly as crude oil prices. With the peace effort now in ruins and fuel prices rising again, the increase in gas costs is likely to remain a major issue for American voters ahead of the midterm elections in November.

In sum, US gas prices have returned to the USD 4-a-gallon mark as the collapse of the US-Iran agreement and renewed attacks in the region once again disrupt oil supplies, pushing up crude prices and adding to pressure on motorists across the country.

With PTI Inputs

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Published By:

India Today Web Desk

Published On:

Jul 21, 2026 02:50 IST

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