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By Giulia Carbonaro
Senior Reporter
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National average gas prices pushed past $4.50 per gallon for the first time since July 2022 on Wednesday, according to the latest data by the American Automobile Association (AAA).
The national average hit $4.536 as of Wednesday, a rise of about 5¢ from Tuesday's average of $4.483, the AAA said.
In California, where drivers paid the highest price for gas, the statewide average reached $6.160 on Wednesday, according to AAA. In Oklahoma, where they paid the lowest, the statewide average was $3.962 per gallon. In both states, prices were significantly higher than a month earlier, or a year earlier.
American drivers have been seeing prices at the pump increasing since the U.S. and Israel launched joint strikes on Iran on February 28.
Prices had been steadily falling prior to the war, the nationwide average price for a gallon of regular gas dipped to $2.98 on February 26.
Yet a market surge provided a glimmer of hope for drivers early on Wednesday after a report that a deal to end the Iran war could be in sight.
Axios, citing anonymous U.S. officials, said U.S. and Iran negotiators had agreed "a one-page memorandum of understanding to end the war" and eventually reopen the Strait of Hormuz, the crucial shipping.
The price of U.S. crude oil plunged 12 percent to below $90 per barrel and international Brent crude oil—the international benchmark for oil—was down 11 percent to below $100 per barrel.
President Donald Trump wrote on Truth Social on Wednesday morning that "Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran."
Newsweek contacted the White House via email on Wednesday about the report of the new framework for a deal in Iran.
How Gas Prices Compare Under Trump and Biden
During Joe Biden's administration, gas prices were consistently above $4.50 per gallon between March and August 2022. The rise came in the months following the start of Russia's full-scale invasion of Ukraine, which unltimately stunted supply and spooked the market.
Prices peaked during that period in June 2022, when the AAA national average reached approximately $5.00–$5.01 per gallon, the highest on record at the time.
Where Gas Prices Could Decrease
Gas prices across the Great Lakes are expected to fall sharply in the next two weeks as refinery problems ease, according to a leading fuel‑market analyst at GasBuddy.
Michigan, Indiana, Ohio, Illinois and Wisconsin likely to see some of the biggest declines, according to Gas Buddy head of petroleum analysis Patrick De Haan. He said in a post on X on Tuesday that average gasoline prices in the region could drop 20–40 cents per gallon, with diesel falling 25–60 cents, barring any new global disruptions.
Why the Iran War Affects U.S. Gas Prices
The Iran war has effectively put a chokehold on the Strait of Hormuz, throttling traffic through the narrow channel, which normally sees the passage of ships carrying one fifth of the world’s oil.
The U.S. is the world’s largest oil producer and net exporter of gasoline, but is not immune to global price changes, which have spiked since the Iran war began.
Since the start of the conflict, gas prices in the U.S. have risen by 50 percent, according to AAA.
Gas prices in the U.S. are set by gas station owners, who are heavily influenced by oil prices when deciding what to charge. The Energy Information Administration (EIA) estimated that in 2026 oil prices represented about 51 percent of the price of gas per gallon.
This significant disruption to the global supply of oil, combined with investors’ concern about the impact of the conflict, has caused oil prices to jump to more than $100 a barrel since the Iran war began.
Iran War Latest as Trump Halts U.S. Plan
Experts believe that gas prices in the U.S. will not come down until safe passage through the Strait of Hormuz is re-established. But no matter how hard it has tried, the Trump administration has so far failed to coerce or entice the Iranian regime to reopen the channel.
President Donald Trump ordered his own blockade of the Strait of Hormuz last month to counteract the Iranian one, hoping to deliver a significant blow to the Middle Eastern country’s economy and force it to reopen the channel. But Iran has not budged.
“If they don’t get their oil moving, their whole oil infrastructure is going to explode,” Trump said in late April. “They say they only have about three days left before that happens.”
Trump paused the U.S. operation to escort commercial ships through the Strait of Hormuz, “Project Freedom,” after just one day of it being in place.
While Washington and Tehran appear stuck in a test of wills, the conflict is growing increasingly unpopular among Americans. The latest Washington Post-ABC-Ipsos poll suggests 61 percent of Americans believe that using military force against Iran was a mistake, and fewer than two in ten believe that the country’s actions in Iran have been successful.
The poll was conducted online between April 24 and 28 among 2,560 U.S. adults nationwide.
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