NEW YORK, July 20 (Xinhua) -- U.S. regular gasoline prices have surpassed 4 U.S. dollars per gallon again, driven by escalating geopolitical tensions and the ongoing conflict in the Middle East, placing renewed economic strain on American consumers and businesses.
According to data released by the American Automobile Association, the national average for a gallon of regular gasoline hit 4.003 dollars on Monday. While only a slight increase from Sunday, it marks a 13-cent jump from a week ago and signals that oil refiners remain highly concerned about the escalating conflict in the Middle East.
The renewed price volatility is closely linked to uncertainty over global oil supplies. As oil refineries purchase their crude supplies weeks in advance, the recent resumption of hostilities between the United States and Iran has triggered a steady climb in fuel costs. According to tracking firm GasBuddy, the national average now stands nearly a dollar higher than it did a year ago.
The pain at the pump varies significantly by region. California, Hawaii, and Washington state are currently experiencing the highest spikes, with averages hitting 5 dollars or more per gallon. Other western states, such as Nevada and Oregon, are seeing prices rise steadily and could reach the 5-dollar mark in the coming month. Meanwhile, Indiana maintains the lowest state average at 3.353 dollars per gallon, though even that figure represents a 12-cent increase from the previous week.
"Average gasoline and diesel prices rose in nearly every state for the second straight week," said Patrick De Haan, head of petroleum analysis at GasBuddy. "While the ongoing U.S.-Iran situation continues to weigh on markets, the story is increasingly less about crude oil and more about global refining capacity -- the Strait of Hormuz remains closed while continued Ukrainian attacks on Russian refineries further squeeze an already strained supply picture."
In addition to gasoline, a parallel surge in diesel costs threatens broader economic damage. U.S. retail diesel prices averaged more than 5 dollars a gallon on Friday, marking a return to highs seen a month ago and an increase of more than 1.3 dollars from last July.
Diesel, which yields more energy than gasoline, is the critical fuel of choice for heavy-duty commercial trucks, agricultural machinery and school buses. The national average diesel price started 2026 at about 3.53 dollars per gallon before tensions in the Middle East disrupted shipping, pushing prices above 5 dollars in mid-March.
The widespread use of diesel means its price spike affects nearly every sector of the economy. "This will hit anything that's shipped," Michael Sposi, a professor of economics at Southern Methodist University, told ABC News. ■