US gas prices hit highest level in over 21 months

Average gasoline prices in the United States have climbed to their highest level in more than 21 months, says new data from American Automobile Association, CNN reports.

The latest reading shows the national average rising by 4 cents per gallon to $3.58, marking the highest average price since early 2024. Prices have surged 38 cents in the past week and 64 cents over the last month, the steepest weekly and monthly increases since early March 2022 following Russian invasion of Ukraine.

Overall, gasoline prices have jumped 22% over the past month.

The increase is largely linked to the ongoing war involving Iran and disruptions to global energy flows, including the virtual closure of the strategic Strait of Hormuz, a key waterway through which roughly 20% of the world’s oil supply normally passes. The situation has been further exacerbated by Iranian retaliatory strikes targeting oil facilities in neighboring Gulf states, including the United Arab Emirates, Qatar, Kuwait, and Saudi Arabia, the world’s largest oil exporter.

Diesel prices have risen even more sharply. The average diesel price increased 5 cents to $4.89 per gallon in the latest report, bringing the total weekly increase to 79 cents.

There were some signs of potential relief in global energy markets. Oil prices fell sharply in trading on March 9 after Donald Trump said during an evening news conference that he believed the war would be over “very soon.”

However, oil futures moved slightly higher again in early trading on March 10. Analysts note that even if crude prices begin to decline, it typically takes time for lower costs to be reflected at the pump.

Energy markets remain sensitive to both economic conditions and supply risks, with prices tending to fall during economic slowdowns and rise when oil supply is constrained or under threat.

By Vafa Guliyeva