U.S. gasoline prices remain elevated at over $4 per gallon amid prolonged regional tensions and supply risks.
U.S. gasoline prices showed minimal movement on July 31, with the national average at $4.093 per gallon, according to GasBuddy, and $4.106 per gallon, per AAA. Both measures reflect a 45% year-over-year increase, driven by a 40% surge in oil prices in 2026 due to the U.S.-Israeli conflict with Iran.
The war, now in its sixth month, has disrupted regional supply chains and heightened geopolitical risks. Recent drone attacks on key infrastructure, including Egypt’s Damietta Port, have further strained markets. Analysts warn of continued volatility as diplomatic resolutions remain elusive.
Oil prices have climbed more than 20% in July alone, with no immediate signs of stabilization. The conflict’s persistence and escalating attacks on energy hubs suggest sustained upward pressure on fuel costs.