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Iran war hits Americans at gas pumps as conflict drives up energy costs

Nearly six months into the US-Iran war, Americans are increasingly feeling the conflict’s effects through higher fuel costs and inflation rather than on the battlefield.

Anadolu Agency MIDDLE EAST
Published August 14,2026 11:16 AM
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Nearly six months into the US war with Iran, its most visible impact for ordinary Americans is increasingly being felt far from the battlefield -- at gas stations, airports and in household budgets.

The national average retail price for regular gasoline stood at $4.006 per gallon as of Aug. 10, according to the US Energy Information Administration (EIA), keeping fuel around the politically sensitive $4 threshold.

The increase is particularly striking compared with expectations before the conflict. In January, the EIA forecast that US gasoline prices would fall 6% in 2026. Its latest outlook instead projects an average price of $3.78 per gallon for the year, compared with $3.10 in 2025.

Government inflation data also reflects the scale of the energy shock. Although gasoline prices eased in July, they remained 24.6% higher than a year earlier, while overall energy prices were up 14.7%, according to the Bureau of Labor Statistics (BLS).

Annual consumer inflation stood at 3.4% in July, compared with 2.4% in January, before the war began.

The impact varies considerably across the country. In the Washington metropolitan area, gasoline was 24.8% more expensive than a year earlier, while Dallas-Fort Worth recorded an increase of 19.8%.