Sixty-one days into the war with Iran, gasoline prices keep climbing. The national average for a gallon of regular is $4.43 — up $0.35 this week and $1.45 since the conflict began. The Midwest has felt the sharpest rise: Ohio, Indiana and Michigan saw prices jump about $1 over the past seven days.
The surge is squeezing both businesses and households. A near-doubling of fuel expenses was cited as a contributing factor in Spirit Airlines’ collapse. Transportation Secretary Sean Duffy blamed the Biden administration for blocking a JetBlue merger in 2024, saying regulators rejected the deal amid concerns it would reduce low-cost competition. Spirit, meanwhile, pointed to soaring fuel costs tied to disruptions around the Strait of Hormuz that have rippled through the economy.
Consumers are tightening their belts: roughly 42% of Americans say they are cutting back on household spending. Higher gas prices increase travel and freight costs and act as a visible signal of broader inflation for many shoppers. “People are not going to spend as freely when they have to fill up their cars,” one consumer said. “Even if they’re not filling up, it’s like those high gas prices become a billboard and a signifier for all prices being higher.”
With midterm elections approaching, President Trump has tried to reassure voters, saying prices will fall once the war ends and downplaying some diplomatic overtures from Iran. He told lawmakers a ceasefire had “terminated” hostilities after an April pause, while also warning that Iran still poses a threat to U.S. forces in the region; roughly 50,000 U.S. troops remain deployed.
The mix of military tensions near critical shipping lanes, market reactions and political maneuvering has intensified scrutiny of the administration as rising fuel costs reshape economic and electoral calculations.
Olivia Gazis reports from Doral, Florida.