The national average price of gasoline has returned to $4 per gallon, marking an increase of 86 cents compared to a year ago and 13 cents higher than last week.
According to AAA, regular unleaded now averages $4.003 per gallon, up from $3.87 a week ago and $3.95 a month ago.
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In 2025, drivers were paying just $3.14 per gallon.
Diesel prices have also surged, averaging $5.11 per gallon—a jump of 23 cents in a week and $1.38 over the past year.
Regional disparities remain stark.
Californians pay an average of $5.50 per gallon, with some areas like Mono County reaching $6.70.
In contrast, Indiana's statewide average is $3.35 per gallon, and even the priciest areas there are under $3.50.
Renewed Hostilities Drive Spike
The price increase stems from the collapse of the uneasy truce between Iran and the United States, leading to renewed attacks in the Middle East.
Over the past several days, Iran has targeted ships, neighboring countries, and American military installations. On July 20, U.
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S.
Central Command announced new strikes against Iran to “further degrade Iranian military capabilities used to attack commercial shipping in the Strait of Hormuz.”
This marks the tenth consecutive day of attacks. Two U.
S. service members were killed in Jordan on July 17, and a third is missing.
Another service member died in Iran on July 18 during a controlled detonation of an unexploded Iranian drone.
President Trump responded by stating, “Every time Iran kills an American soldier they will pay for that killing many times over!”
Iran's Foreign Minister Seyed Abbas Araghchi countered, “Iran is our homeland” and “we will defend every inch of our land until our very last breath.”
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The Strait of Hormuz has effectively been closed again, halting oil shipments and pushing prices upward.
