The average price of regular gas nationwide rose to $3.015 per gallon on March 2, exceeding $3 for the first time since the end of November as the United States and Israel wage war with Iran.
People’s receipts for a tank of regular gas rose an average of $0.078 per gallon from Feb. 23, when gas was $2.937 per gallon. The average price of regular gas is still $0.063 less per gallon than one year ago and $0.335 less than two years ago under the Biden administration, according to the U.S. Energy Information Administration.
“The national average price of gasoline has climbed for a fourth straight week, driven primarily by seasonal tightening and broader market dynamics,” Patrick De Haan, petroleum analyst at GasBuddy, said Monday. “Looking ahead, markets will now begin reacting to this weekend’s U.S.–Iran attacks, which have elevated geopolitical risk premiums even in the absence of immediate supply disruption.”
The price increase occurred in the days following the U.S. and Israel’s joint strikes on Iran over the weekend, with the conflict escalating into a regional war affecting oil exporters across the Middle East. The Islamic Revolutionary Guard Corps has moved to choke off the Strait of Hormuz, leading President Donald Trump to offer risk insurance, with logistical and financial transportation assistance, for shippers in the Gulf.
“Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy, traveling through the Gulf. This will be available to all Shipping Lines,” Trump wrote on Truth Social, vowing to “ensure the FREE FLOW of ENERGY to the WORLD.”
“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,” Trump said.
TRUMP OFFERS ASSISTANCE TO OIL SHIPPERS TO HALT PRICE SPIKE FROM IRANIAN THREAT
The Dow Jones Industrial Average fell 398 points on Thursday as stock markets reacted to the news. Several U.S. airlines’ shares fell after the bombing of Iran commenced, CNBC reported, as fields such as the airline and shipping industries brace for possible impacts of rising oil prices and the war in the Middle East.
United Airlines and Delta Air Lines performed the worst on the S&P 500 on Thursday, with airlines such as Southwest, American, and JetBlue not far behind, according to the outlet.