Gas Prices Jump 35 Percent as Middle East Conflict Disrupts Oil Shipping

The national average price for a gallon of regular gasoline reached $3.98 as of March 24, 2026, up from $2.95 the prior month, a 35 percent increase driven by disruptions to oil shipping in the Middle East.

Conflict in the region has disrupted tanker traffic through the Strait of Hormuz, a critical waterway for global oil transport. The disruption pushed crude oil prices higher, which fed directly into pump prices across the United States.

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.

Higher gas prices affect household budgets directly and push up costs for goods that rely on trucking and shipping. Analysts at Kiplinger said prices are expected to recede if a peace deal in the Middle East takes hold, but other forecasters warned that a broader conflict involving Iran could push prices higher still.

The price increase comes alongside other financial pressures in April 2026. The 30-year fixed mortgage rate rose to 6.22 percent for the week ending March 19, up from 6.11 percent the prior week. The Federal Reserve held rates steady at its most recent meeting, and markets currently expect rates to remain unchanged through December.

The U.S. Department of Education and Treasury are also in the process of transferring management of $1.7 trillion in federal student loans to the Treasury Department. The initial phase involves $180 billion in defaulted loans from about 9.2 million borrowers.