economy
March 2, 2026
How a U.S.-Iran war could 'immediately' impact gas prices at the pump, according to experts
Higher oil prices will cause an almost immediate jump in gasoline prices, as well, experts say.
TL;DR
- U.S. crude prices gained 6% after U.S. and Israel attacked Iran.
- A prolonged U.S.-Israel conflict with Iran could disrupt oil supplies and increase prices.
- Iran is the fourth-largest oil producer in OPEC.
- The average price of unleaded gasoline in the U.S. is $2.997 a gallon, up 2% from a week ago.
- A $10 increase in oil price per barrel could raise gasoline prices by about 25 cents per gallon.
- The cost of crude oil is the largest component of retail gasoline prices.
- Disruptions through the Strait of Hormuz, a key oil corridor, could push oil prices above $100 per barrel.
- The full impact on gasoline prices could be delayed by about six weeks due to processing and delivery times.
- Higher gasoline prices strain household budgets, especially for lower-income households.
- Increased fuel costs may be passed on to consumers by companies.
- Higher gasoline prices have an outsized impact on consumer sentiment, affecting spending and weighing on the economy.
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