by Fuel prices rise amid conflict in the Middle East
The average national price for a gallon of gasoline in the US has reached the $4 mark. This occurred after an unstable ceasefire between Iran and the United States escalated into open conflict. The situation has essentially blocked the Strait of Hormuz again, leading to a near-complete halt in oil supplies.
According to AAA, the price of regular unleaded gasoline has risen from $3.87 a week ago and $3.95 a month ago. For comparison, in 2025, drivers were paying only $3.14 per gallon.
Diesel fuel has also significantly increased in price, with an average price of $5.11. This is an increase of 23 cents over the week and $1.38 over the year.
Regional differences in prices
As always, prices vary significantly by region. Residents of California pay an average of $5.50 per gallon. In some areas of the “Golden State,” such as Mono County, the average price reaches $6.70.
The situation is completely different in Indiana, where the state average price is only $3.35 per gallon. Even in the most expensive areas of this state, gasoline can be found for less than $3.50.
Average gallon prices as of July 20, 2026
| Regular | Mid-Grade | Premium | Diesel | E85 | |
| Current | $4.0030 | $4.4870 | $4.8730 | $5.1080 | $3.0790 |
| Yesterday | $3.9980 | $4.4920 | $4.8740 | $5.1010 | $3.0750 |
| Week Ago | $3.8720 | $4.3660 | $4.7520 | $4.8750 | $2.9630 |
| Month Ago | $3.9510 | $4.4590 | $4.8370 | $5.0620 | $3.0350 |
| Year Ago | $3.1410 | $3.6180 | $3.9780 | $3.7270 | $2.5400 |
Events in Iran and US reaction
The jump in gasoline prices can be attributed to the resumption of hostilities in the Middle East. Over the past few days, Iran has attacked ships, neighboring countries, and US military facilities in the region.
Today at approximately 4:00 PM, the US Central Command announced new strikes on Iran, aimed at “further degrading Iran’s military capabilities used to attack commercial shipping in the Strait of Hormuz.” This marks the tenth consecutive day of attacks, and it comes after a deadly weekend for US service members in the region. Two soldiers were killed in Jordan on July 17, and one is missing. Another service member was killed in Iran on the 18th during a controlled detonation of an unexploded Iranian drone.
Today at 4:00 PM Eastern Time, at the direction of the Commander-in-Chief, US Armed Forces began a new round of strikes against Iran. The strikes are aimed at further degrading Iran’s military capabilities used to attack commercial shipping in the Strait of Hormuz.
— US Central Command (@CENTCOM) July 20, 2026
President Trump reacted sharply to the deaths of the soldiers, stating: “Every time Iran kills an American soldier, they will pay for that killing many times over!”
For his part, Iranian Foreign Minister Seyed Abbas Araghchi noted: “Iran is our homeland” and “We will defend every inch of our land until our last breath.”
The escalation of the conflict between the US and Iran, which has led to the blocking of the Strait of Hormuz, has a direct impact on global oil prices. Since a significant portion of the world’s oil supplies pass through this strait, any disruptions are immediately reflected in the cost of fuel for end consumers. The situation is complicated by the fact that military actions have been ongoing for ten consecutive days with no signs of de-escalation, which could lead to further price increases. It is worth noting that even within a single country like the US, prices can vary significantly due to logistical peculiarities and local taxes, making some regions much more vulnerable to such global crises.
