Gas prices in the United States topped $4 per gallon on average Monday, July 20th, 2026, as an escalation of the Iran war renewed concerns over a global oil shortage. According to AAA data, prices at the pump increased by 13 cents per gallon, or 3%, over the past week, reaching an average of $4.003 per gallon.

This recent rise returns gasoline prices to levels seen soon after the Iran war began in late February. The conflict in the Middle East led to Iran closing the Strait of Hormuz, a critical maritime route responsible for transporting about one-fifth of the world's oil supply.

Gas prices had temporarily fallen below $4 per gallon last month after the U.S. and Iran struck a preliminary agreement aimed at ending the war. Prior to the Iran conflict, fuel prices last exceeded $4 per gallon in August 2022 following Russia's invasion of Ukraine.

In related developments, Central Command reported that two U.S. service members were killed in an attack on Jordan on Friday, July 18th, with a third service member missing. Additionally, CENTCOM confirmed another service member was killed in Iraq on Saturday, July 19th. President Donald Trump stated on Sunday, July 19th, that the U.S. hit Iran "hard" in honor of the service members killed over the weekend.

Despite some easing last month, overall inflation remains significantly above the Federal Reserve's target rate of 2%, further impacting fuel costs.

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