economy
March 8, 2026
White House worries as gas prices jump amid ongoing US-Israel war on Iran
US drivers are largely insulated from higher oil prices caused by Middle East turmoil – but only to a point
TL;DR
- Average gasoline prices have jumped nearly 27 cents in a week to $3.25 per gallon.
- The US is the world's largest crude oil producer, providing some insulation from global energy shocks.
- The White House is reportedly seeking ways to lower gas prices amid the conflict.
- Iran shutting down traffic through the Strait of Hormuz, a key oil shipping area, has influenced global prices.
- US oil prices need to reach $125 a barrel, or $4.25 a gallon for gasoline, to inflict significant economic damage.
- An increase of $10 in oil barrel price can lead to a 0.1% drop in growth and a 0.2% increase in price levels.
- Higher prices could incentivize shale-oil producers to increase output, potentially lowering global prices.
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