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Gas price worries continue across US amid Iran war
We are now hearing that President Donald Trump believes the U.S. military is close to accomplishing its goals in Iran. This comes as oil prices rise again, reportedly topping $109 per barrel. According to Fox Business, drivers on the West Coast are seeing the highest costs, with prices reaching $5.89 per gallon in California and $5.35 in Washington. LiveNOW’s Andy Mac is speaking to Matt McClain from GasBuddy who has more on how the Iran conflict is impacting gas prices.
Gas prices drove up inflation significantly in March, according to the latest data from the Labor Department.
Consumer price index
Big picture view:
Gas prices pushed inflation up in March in the biggest year-over-year increase since May 2024, according to the U.S. Bureau of Labor Statistics’ data.
RELATED: Consumer sentiment plummets as inflation fears surge
By the numbers:
Consumer prices were up 3.3% last month compared to March 2025.
Compared to February 2026, consumer prices in March jumped 0.9% – the biggest gain in nearly four years.
Dig deeper:
As the war in Iran drives up fuel costs, the cost of gasoline accounted for the biggest price increase for Americans in March. Gasoline costs went up more than 21% since February, and were up nearly 19% since the year prior.
The Associated Press reported it was the largest monthly jump in gas prices in six decades.
RELATED: Fuel and fertilizer prices could stay high for ‘a prolonged period,’ IEA head warns
Bottom line:
The gas price shock has shifted inflation’s trajectory from a slow, gradual decline to a sharp increase further away from the Fed’s 2% target.
A customer filling their vehicle with fuel at a gas station, with the Consumer Price Index from 2016 - March 2026 overlaid on top. Gas prices hikes due to the war in Iran sent inflation soaring in March 2026. (Getty Images)
Inflation 2026
Big picture view:
March saw the biggest inflation jump so far this year.
In January and February, prices were up 2.4% since the year before. And those prices were slightly down from the end of 2025, when prices were up 2.7% since the end of 2024.
War in Iran and gas prices
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U.S. gas prices top $4 for first time since 2022
U.S gas prices top $4 for the first time since 2022. Tom Kloza, Chief Energy Adviser at Gulf Oil, joins LiveNOW from FOX to discuss the latest.
Meanwhile:
The war and its impact on inflation will play out in the coming months remains highly uncertain.
President Donald Trump said recently that gas prices may remain elevated before the midterm elections in November. The national average for gas in the U.S. was slightly over $4 a gallon at the time of his interview.
RELATED: Trump admits gas prices could remain high through November elections
What's next:
A big question for now is how long the oil and gas price shock lasts and whether it will lead to a broader, long-lasting inflation boost, similar to what occurred in the spring of 2022 after Russia invaded Ukraine.
For now, economists say that it is unlikely the U.S. will see a widespread increase similar to a few years ago, when inflation topped 9%.
RELATED: Ways to save money on gas amid Iran war price hikes
The Source: Information in this article was taken from the U.S. Bureau of Labor Statistics’ Consumer Price Index for March 2026. Background information was taken from previous CPIs, the Associated Press and previous FOX Television Station reporting. This story was reported from Detroit.