Diesel, Gas Prices at Highest Level in Years as War Drags On

Average Diesel Price Up 38% From Last Month

Oil tanker gas station
A fuel tank driver delivers fuel to a gas station on March 17 in Baltimore. (Stephanie Scarbrough/AP)
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NEW YORK — TheIran warhas rattled the global flow of oil, with steeper fuel costs alreadystraining householdsworldwide. And in the U.S., drivers are now facing the highest prices they've seen at the pump in nearly two and a half years.

According to motor club AAA, the national average for a gallon of regular gasoline jumped over $3.84 on March 18, up from $2.98 consumers were paying before the U.S. and Israel launched the war with joint attacks against Iran on Feb. 28. The last time gas prices were as expensive as they are now was in October 2023.

“It’s pretty hard. I mean, times are tough for everybody right now," Amanda Acosta, a Louisiana resident, told the Associated Press while filling up her car's tank this week. “I’m getting way less gas and paying way more money.”

She isn't alone. Pain at the pump has been one of the most immediate economic impacts of the conflict, because the price of crude oil — the main ingredient in gasoline — has soared and swung rapidly in recent weeks, due tosupply chain disruptionsand cuts from major producers across the Middle East. Brent crude, the international standard, settled atover $103 a barrelon March 17, up from roughly $70 just weeks ago. And benchmark U.S. crude topped $96 a barrel.



Many eyes are on the White House. Before the war, President Donald Trumponce bragged aboutkeeping gas prices low. But he has since pivoted to try to paint high oil prices as a positive outcomefor the U.S. Last week, Trump said that because the U.S. is nowlargest crude producerin the world, “when oil prices go up, we make a lot of money.”

Companies that supply oil benefit from higher prices. But steeper costs always pinch consumers' wallets — and today's rising prices arrive as many households continue to face wider cost of living strains. It could alsopush up already stubborn inflation, at least in the short run, and potentially hammer the economy more significantly if steep costs drag on. Experts say that that could apply more pressure on the Trump administration, particularlyas affordabilitycontinues to stay at the top of voters' minds.

Drivers See Impact at Pump

"I just want all of it to end. I just want to get out of there, out of Iran," said Meghan Adamoli, a New Jersey resident who was among customers filling up at a Multani station on March 17. While Adamoli said she can personally “roll with the punches” when it comes to gas prices, she knows that a lot of others can't.

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highway traffic

Truck and auto drivers face higher fuel costs. Traffic flows on I-465 in Indianapolis on March 17. (Michael Conroy/AP)

Dan Bradley, a flatbed truck driver from Pennsylvania, said he has felt the rising prices for both his work and personal vehicles. Beyond regular gasoline, the U.S. average for diesel neared $5.07 a gallon on March 18, per AAA, its highest level since 2022. Before the Iran war started, diesel was averaging at about $3.76 a gallon.

“It sucks when you’re filling up,” said Bradley. “What are you going to do, not get gas?”

Meanwhile, Texas resident Clay Plant said that rising oil costs is good for the economy of his town, Lubbock. He noted that he sees more people work as drilling picks up.

“It’s kind of a good sign for us in west Texas,” Plant said. “I look at it as my friends and family get to eat and they get to go to work.”

Search for More Supply

The U.S. is now a net exporter of oil — and other parts of the world that rely more heavily of fuel imports from the Middle East,notably Asia, have seen more stark energy shocks amid the war. But thatdoesn’t mean America is immuneto price spikes.

Oil is a globally traded commodity. And most of what the U.S. produces is light, sweet crude — but refineries on the East and West coasts are primarily designed to process heavier, sour product. As a result, the country also needs imports.

The road ahead is uncertain, and prices could worsen if the war drags on. Iran has effectively halted nearly all tanker movement in thekey Strait of Hormuz, where roughly one-fifth of the world’s oil once sailed through on a typical day. That has led to cuts from some major producers in the region, because their crude has nowhere to go. Trump hasdemandedthat other countries send warships to reopen the waterway, but hasyet to garner sign-onsas manyask for more clarityabout America’s next steps for the war. Meanwhile, Iran, Israel and the U.S. have all struck oil and gas facilities.

All of this has left countries scrambling for other supply. Last week, the International Energy Agency pledged torelease 400 million barrelsof oil available from its member nations’ stockpiles. Trump, who previously downplayed the need to tap into reserve oil, later confirmed that the U.S. would pull 172 million barrelsfrom the Strategic Petroleum Reserveas part of the IEA’s effort. The administration also announced it will temporarilyfree up Russian oilfrom U.S. sanctions for its war on Ukraine.

Still, analysts say these efforts will be ashort-term bridge. Refineries buy crude oil in advance, and it takes time for new supply to trickle down to consumers. And while steep crude costs is the top driver of gas prices today, a handful of other factors are also on the table. U.S. gas prices typically tick up a bit at this time of year, as more drivers hit the road and the warming weather brings a shift to “summer blend” fuel, which is more expensive to make than winter blend.

As always, some states also have pricier averages than others, due to factors ranging from nearby supply to differing tax rates. On March 17, California had the highest average of over $5.54 per gallon, while Kansas had the lowest of about $3.21.

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Experts warn all of this couldeat into wider spending. As consumers pay more to cover necessities like gas, many households — particularly those that are middle or low income — will be forced to cut their budgets in other places, explains Francesco D’Acunto, a finance professor at Georgetown University. More expensive fuel also impacts other sectors, from transporting groceries to household utility bills.

These combined inflation shocks, and overall high uncertainty during times of war, also “makes many houses and consumers freeze,” D’Acunto added. He said that could cause some to hold off on bigger financial decisions — like buying a car or house — farther down the road. “So potentially even that will have such an effect on the overall economy.”

AP Journalists Stephen Smith in Madisonville, La.,, Geoff Mulvihill in Cherry Hill, N.J., and Mingson Lau in Claymont, Del., contributed.

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