Iran war hits Americans at gas pumps as conflict drives up energy costs

The Express Tribune reported that the average US retail pump rate for regular gasoline was $4.006 per gallon on August 10, according to the Energy Information Administration. That keeps fuel hovering near the $4 level, which carries clear political weight. In January the agency had expected gasoline to fall 6% in 2026, yet its latest outlook projects an annual average of $3.78 per gallon, compared with $3.10 last year.

Bureau of Labour Statistics data shows gasoline in July was still 24.6% above a year earlier, even after it eased that month, while overall energy costs climbed 14.7%. Annual consumer inflation reached 3.4% in July, up from 2.4% in January before the conflict began. Airline fares rose 25.5% over the same period last year, while Gulf Coast jet fuel averaged $3.40 per gallon in July, almost 68% above January.

The report cautions that tariffs and supply constraints also feed into inflation, so not every price increase can be attributed to the war. Crude is central to the link, since about 20 million barrels a day moved through the Strait of Hormuz in 2024. Brent traded near $88 a barrel on Friday and West Texas Intermediate around $82, with ongoing shipping restrictions keeping a geopolitical premium in prices.