March 3, 2026 / 11:14 AM EST / CBS News
Gas prices across the United States climbed 11 cents overnight as the conflict with Iran spread, lifting the national average to $3.11 per gallon, AAA reported. That level is the highest in more than three months; the last time the average was $3.11 was Dec. 1, 2025, according to U.S. Energy Information Administration data.
Analysts warn consumers could see even larger increases within days. GasBuddy petroleum analyst Patrick De Haan said prices could rise another 30 cents per gallon by the end of the week, driven by disruptions to shipments through the Strait of Hormuz — a chokepoint that handles about 20% of global oil flows.
Global oil benchmarks jumped sharply on the news. Brent crude rose $4.72 (6.2%) to $80.83 per barrel, while U.S. benchmark crude gained $6.22 (8.8%) to $77.45 per barrel, FactSet reported.
Higher pump prices will cut into household purchasing power, economists say. Capital Economics analysts noted the hit to consumers could be significant depending on how long prices remain elevated, estimating a short-lived move to $80-per-barrel oil would add roughly 0.4 percentage points to headline inflation for that period.
Prices had already been trending up this year amid worries over U.S.-Iran tensions: as of Monday the national average was about $3.00 per gallon, roughly 20 cents higher than it was in early January, AAA figures show.
Other energy markets are feeling the strain as well. Natural gas benchmarks jumped: Europe’s Dutch TTF futures spiked about 39% on Monday, and U.S. Henry Hub futures rose roughly 5.4% on Tuesday. The market reaction follows reports that Qatar paused liquefied natural gas (LNG) production at its Ras Laffan facility after drone attacks; that plant supplies about one-fifth of the world’s LNG, Bloomberg reported.
EY-Parthenon chief economist Gregory Daco warned that attacks on liquefaction or export sites would remove supply directly from the global LNG market and have a larger effect than shipping disruptions alone. He noted LNG markets are less resilient than oil markets because they lack strategic reserves, have limited spare liquefaction capacity, and rely on regional and seasonal storage.
With crude and natural gas prices surging amid heightened geopolitical risk, forecasters say U.S. consumers should prepare for higher fuel and energy bills in the coming days and weeks.
Edited by Alain Sherter