Gas Prices Hit $3.98 Per Gallon as Middle East Conflict Disrupts Oil Supply

The national average price for regular gasoline hit $3.98 per gallon on March 24, 2026, a jump of nearly 35% from $2.95 just one month earlier.

The increase is driven by rising crude oil prices linked to conflict in the Middle East. Tanker traffic through the Strait of Hormuz, a critical chokepoint for global oil shipments, has been disrupted, tightening supply.

The International Energy Agency responded by agreeing to release 400 million barrels of oil from member countries' emergency reserves. The United States is contributing 172 million barrels from its strategic reserves over four months to help offset the price spike.

Higher gas prices hit household budgets directly, especially for commuters. They also push up prices for goods that rely on trucking and shipping. Some consumers are cutting back on essentials as costs rise.

The price increase is also affecting the housing market. The average 30-year fixed-rate mortgage rose to 6.22% for the week ending March 19, up from 6.11% the prior week. The Federal Reserve held rates steady, and markets now put more than a 70% chance on rates staying unchanged through December.

Used electric vehicle sales are rising in response to higher gas prices, according to market data. Consumers are looking for ways to reduce fuel costs, and used EVs are becoming a more attractive option.

Financial advisers are urging consumers not to make fear-driven decisions in a volatile market. Sticking to a savings plan is recommended over panic buying gold or cryptocurrency, even as gold has surged past $4,800 per ounce as central banks stockpile the metal.

Morgan Stanley launched a Spot Bitcoin ETF in April 2026, signaling broader mainstream adoption of digital assets.