U.S. gas prices hit more than $4 per gallon; Stocks surge on reports on potential end of Iran war

U.S. gasoline prices have surpassed $4 per gallon as the U.S./Israel war with Iran pushes up oil prices.

The average national gas price was $4.02 ($4.018) per gallon on Tuesday (March 31), according to AAA’s Fuel Gauge Report.

It’s the first time since 2022 that U.S. gas prices have surpassed $4 per gallon.

Gas prices stood at $2.98 per gallon before the war started. That translates into a 35%, or $1.04 per gallon gain.

The Middle East war has restricted oil flows in the Strait of Hormuz with Iran threatening and striking oil tankers and cargo ships. Iran has also targeted energy infrastructure in Persian Gulf states aligned with the U.S. and President Donald Trump.

International oil prices (Brent) were trading at more than $118 per gallon Tuesday. That is up 63% since the Iran war began at the end of February.

U.S. crude oil prices were trading at just under $102 per barrel Tuesday, up 53% from before the war.

The Strait of Hormuz accounts for 20% of the world’s oil flows with Asia and Europe more reliant on the Middle Eastern oil than the U.S.

On Monday, U.S. President Donald Trump threatened to bomb and obliterate Iran’s oil wells, power plants and energy infrastructure on Kharg Island in the Persian Gulf “if the Hormuz Strait is not immediately ‘Open for Business.’"

The U.S. president had previously set a deadline of Monday, April 6, for Iran to reach peace terms and reopen the Persian Gulf strait.

The U.S. has already bombed Iranian military installations on Kharg Island, a major Iranian energy depot.

On Tuesday, there were indications Trump could look to end the war and negotiate terms with new Iranian regime leaders after the U.S. and Israeli air strikes and killings of Supreme Leader Ayatollah Ali Khamenei and top commanders.

There is uncertainty about what might happen with the Strait of Hormuz.

Trump said in a social media post that countries needing fuel “who refused to get involved in the decapitation of Iran” should either buy more energy from the U.S. or “build up some delayed courage, go to the Strait, and just take it.”

“You’ll have to start learning how to fight for yourself,” said Trump, adding that Iran has been decimated.

Separate reports that Iranian President Masoud Pezeshkian and Trump could end the war have buoyed volatile U.S. stocks, China and Pakistan have also presented plans for a ceasefire and reopening of the strait, according to reports.

The Dow Jones Industrial Average closed up more than 1,125 points and the Nasdaq gained more than 3.8% Tuesday as Wall Street and investors looked for a potential cessation to the war and its global impacts, especially on oil and gasoline.

Trump said Tuesday evening the U.S. could exit the war within two to three weeks.

For more: https://gasprices.aaa.com/