Gas prices in the U.S. have reached their highest levels since the start of the Iran war, putting intense pressure on President Trump even as he insists that the Islamic republic is on the verge of collapse.
The national average price of a gallon of gas Tuesday stood at $4.18, up from $4.11 Monday, according to the AAA motor club.
The 1.7% leap was the highest one-day jump since Mr. Trump launched U.S. strikes against Iran on Feb. 28.
The average cost per gallon is the highest since summer 2022, after Russia’s invasion of Ukraine.
Gasoline is refined from crude oil, so overseas supply shocks from Iran’s clampdown on oil traffic in the Strait of Hormuz caused pain at the pump. Gas cost about $3 per gallon in the U.S. when the conflict began.
While motorists gripe about high costs, some companies are flourishing from higher prices. British energy titan BP on Tuesday reported $3.84 billion in earnings for the first three months of 2026, blowing past the $687 million in net income over the same period last year.
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The price of Brent crude, an international benchmark, jumped nearly 3% to $111 per barrel Tuesday. Brent crude traded near $70 per barrel when the war began.
The increase is the latest evidence of global economic pressure stemming from Iran’s closure of the Strait of Hormuz, a strategic waterway connecting the Persian Gulf and the Gulf of Oman that carries 20% of the world’s oil.
Iran has kept the strait effectively closed since early March with a combination of drones, missiles, small boats and sea mines. The operation is in response to the war.
The U.S. and Israel launched strikes against Iran aimed at forcing Tehran to abandon its nuclear ambitions and curtail its support for terrorist proxies in the Middle East.
Mr. Trump has argued that domestic gas prices will recede quickly once the war is over and that short-term economic pain will be worth the long-term gain of preventing Iran from obtaining a nuclear weapon.
“The president brought oil and gas prices down to multiyear lows at record speed, and as traffic in the Strait of Hormuz normalizes, these energy prices will plummet once again. President Trump has always been clear that these are short-term, temporary disruptions,” White House assistant press secretary Taylor Rogers said.
Although the active combat between the U.S. and Iran has been halted under an indefinite ceasefire, negotiations to permanently end the conflict have stalled.
Iran offered Monday to end its blockade of the Strait of Hormuz and end the war if the U.S. lifts its blockade and postpones discussions about Tehran’s nuclear program.
Mr. Trump reportedly told advisers that he was dissatisfied with the offer.
During negotiations, the U.S. has demanded severe limits to Iran’s uranium enrichment program, the elimination of its support for proxy groups and the lifting of the blockade.
The U.S. countered with its own blockade of Iranian ports this month, turning back any ship trying to enter or exit. U.S. Central Command has turned away more than 30 ships near the strait and in the broader region.
Mr. Trump expressed optimism Tuesday that his blockade would force Iran to the negotiating table.
“Iran has just informed us that they are in a ‘State of Collapse.’ They want us to ‘Open the Hormuz Strait,’ as soon as possible, as they try to figure out their leadership situation (Which I believe they will be able to do!),” Mr. Trump wrote on Truth Social.
Iran has given no outward sign that it will bend to Mr. Trump’s demands. Rather, it has taunted the U.S. side on social media, insisting it has cards to play as the world suffers from oil shortfalls and Americans see higher prices at the pump.
Mr. Trump also has insisted that Iran is experiencing massive internal divisions, which is slowing down diplomacy.
On Tuesday, Iran insisted that the country’s decision-making process has “no problem.”
“The president, as head of the Supreme National Security Council, is fully aware of matters,” Iranian government spokeswoman Fatemeh Mohajerani said.
Mr. Trump faced political fire Tuesday from Democrats who say high gas prices are a result of his “war of choice.”
“Donald Trump started a deadly and costly war with Iran that has continued to drag on for months, forcing Americans to foot the bill to the tune of billions and driving up prices at the pump,” said Kendall Witmer, rapid response director for the Democratic National Committee.
Mr. Trump said the economic shocks from the war have not been as acute as one would expect from a major Middle East conflict. He also has pointed to a resilient stock market.
The stock markets were relatively flat Tuesday as the U.S. and Iran struggled to reach a peace deal. Investors are focused mostly on a series of earnings reports from Big Tech companies that bet heavily on artificial intelligence.
Despite rising fuel costs, consumer confidence inched up by 0.6 points to 92.8 in the Conference Board’s monthly index.
The index measures consumer attitudes about business conditions and the labor market. A lower number indicates greater pessimism.
“Consumer confidence edged up in April but was overall little changed, despite material concern about rising gasoline prices as the war in the Middle East prompted a surge in Brent crude oil prices,” said Dana Peterson, chief economist at the Conference Board.
Although consumer views of business conditions declined somewhat, she said, “this was offset by modest improvements in consumers’ perceptions of the labor market, both current and expected, as well as income expectations, which were slightly more optimistic in April.”
European and Asian countries are pressing for an end to the war amid energy shortages.
“The Iranians are obviously very skilled at negotiating or, rather, very skillful at not negotiating, letting the Americans travel to Islamabad and then leave again without any result,” German Chancellor Friedrich Merz told students Monday. “An entire nation is being humiliated by the Iranian leadership, especially by these so-called Revolutionary Guards. And so I hope that this ends as quickly as possible.”
Mr. Trump responded to Mr. Merz on social media by reiterating that Iran can’t have a nuclear weapon.
“The Chancellor of Germany, Friedrich Merz, thinks it’s OK for Iran to have a Nuclear Weapon. He doesn’t know what he’s talking about! If Iran had a Nuclear Weapon, the whole World would be held hostage,” the president wrote on Truth Social. “I am doing something with Iran, right now, that other Nations, or Presidents, should have done long ago. No wonder Germany is doing so poorly, both Economically, and otherwise.”
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