US gasoline prices climb above $4.50 as Iran war fuels supply crunch

US gasoline prices climbed above $4.50 per gallon for the first time since July 2022, as the prolonged Iran war continues to tighten fuel supplies and increase pressure on American consumers.

The nationwide average retail price for regular unleaded gasoline rose to $4.54 per gallon on Tuesday, according to the American Automobile Association.

The latest level is around 50 cents below the all-time high of $5.01 per gallon reached in June 2022.

On a seasonal basis, pump prices are already at a record high for this time of year.

Prices remain highest in California, where gasoline has exceeded $6 per gallon. They have also climbed rapidly across the Midwest, with some states nearing $5 per gallon.

Higher fuel costs are adding to inflation concerns, weighing on consumer sentiment and straining household budgets.

Gasoline prices briefly eased in April after the US and Iran announced a halt to hostilities, but remained above $4 per gallon, a level first breached in mid-March.

Pump prices have risen more than $1.50 since the start of the war, as markets continue to watch for signs of a breakthrough after US President Donald Trump said “Great Progress” had been made toward ending the conflict.

Benchmark gasoline futures, which hovered near $3 per gallon for much of the Middle East conflict, surged in the final week of April to their highest level since June 2022.