NEW YORK CITY, New York: U.S. gasoline prices have climbed above US$4 a gallon for the first time since 2022, as the Iran war drives a global surge in oil costs and adds to pressure on household budgets.

According to the motor club AAA, the national average for a gallon of regular gasoline reached $4.02 on March 30, more than a dollar higher than before the war began. The last time prices were this high was in the aftermath of Russia's invasion of Ukraine.

The national figure masks wide regional differences, with some states already seeing significantly higher prices due to supply variations and taxes.

Since the U.S. and Israel launched a joint war against Iran on February 28, crude oil prices — the key input for gasoline — have risen sharply and remained volatile, amid supply disruptions and reduced output from major Middle East producers.

The surge is being felt globally. In Paris, for example, gasoline prices have reached 2.34 euros per liter, equivalent to about $10.27 a gallon.

Higher fuel costs are adding to broader cost-of-living pressures, forcing households to cut back spending in other areas. Businesses are also feeling the impact, with rising transportation and energy costs feeding into the price of goods and services.

Consumer prices have already become a key issue in the current midterm election cycle. A recent AP-NORC poll found that 45 percent of U.S. adults are "extremely" or "very" concerned about affording gas in the coming months, up from 30 percent shortly after the 2024 presidential election.

Analysts warn that grocery prices could be among the first to rise further, as frequent restocking exposes retailers to higher transport costs more quickly.

Shipping and delivery costs are also climbing. The United States Postal Service, for example, is seeking an eight percent temporary surcharge on certain services, including Priority Mail.

Diesel prices, which are critical for freight transport, have also surged. The U.S. average is now $5.45 a gallon, up from about $3.76 before the war, according to AAA.

If the conflict continues, prices could rise further. Tanker traffic through the Strait of Hormuz, a key route for about one-fifth of global oil supply, has largely stalled, limiting exports from major producers. Strikes on oil and gas facilities by Iran, Israel, and the U.S. have compounded supply concerns.

In response, the International Energy Agency has pledged to release 400 million barrels of oil from emergency reserves. The Trump administration has also eased sanctions to allow more oil from Venezuela and Russia, and temporarily waived shipping restrictions under the Jones Act.

It remains unclear how quickly these measures will bring relief. Refineries often purchase crude in advance, meaning higher costs can take time to filter through to consumers.

Seasonal factors are also playing a role. Demand typically rises as more drivers take to the roads, while the shift to summer-grade fuel, which is more expensive to produce, adds to upward pressure on prices.

Although the United States is a net exporter of oil, it is still exposed to global price movements. Much of the oil it produces differs from what domestic refineries are designed to process, requiring continued imports.

Oil's status as a globally traded commodity means geopolitical shocks can quickly push up prices worldwide. In 2022, U.S. gasoline prices peaked above $5 a gallon following Russia's invasion of Ukraine before easing later that year.