Gas Prices Near $4 a Gallon as Middle East Conflict Disrupts Oil Supply

National average gasoline prices reached $3.98 per gallon on March 24, 2026, a nearly 35% increase from $2.95 the prior month.

The spike is driven by rising crude oil prices tied to conflict in the Middle East. Fighting has disrupted tanker traffic through the Strait of Hormuz, a critical chokepoint for global oil shipments.

In response, the International Energy Agency agreed to release 400 million barrels of oil from emergency reserves. The United States is contributing 172 million barrels from its strategic reserves over four months.

Higher gas prices hit household budgets directly. They also push up prices for goods that rely on trucking and shipping, adding to broader inflationary pressure.

Inflation is expected to show another significant jump in April, potentially hitting 4.0% before easing as energy costs decline, according to Kiplinger.

The 30-year fixed-rate mortgage also rose to 6.22% for the week ending March 19, up from 6.11% the prior week. The Federal Reserve is expected to hold rates steady through December, with markets pricing in more than a 70% chance of no change.

Despite the challenges, the housing market is showing opportunities in some regions. Zillow identifies Indianapolis, Atlanta, Charlotte, Jacksonville, and Oklahoma City among the top buyer-friendly markets for 2026. Indianapolis had an average home value of $283,040, requiring 26.9% of the median household income for an average mortgage payment.

Financial advisors are urging households to review budgets, build emergency funds, and avoid taking on new high-interest debt during this period of elevated prices.