The war in Iran has caused a rise in gasoline prices that is especially affecting California consumers, according to data from the American Automobile Association (AAA).
AAA reports that in California, the most expensive U.S. gasoline market, the average price per gallon on Monday was $5.20, compared to $3.47 nationally. The national average has risen nearly $0.50 since the conflict began more than a week ago, while in the Golden State it has risen $0.55.
Since the United States and Israel launched attacks on Iran on February 28, prompting escalating violence across the Middle East, the price of oil has risen above $100 a barrel for the first time in nearly four years. The conflict has damaged oil and gas facilities and stranded ships carrying approximately 20 million barrels of oil a day in the Gulf.
About 20% of the world’s oil is shipped through the Strait of Hormuz every day, but the canal has been virtually closed for the past week.
Currently, 9 million barrels of oil per day are off the market due to attacks on facilities or producers taking precautionary measures, said Claudio Galimberti, chief economist at Rystad Energy.
“Right now, with all this locked up, we are in a situation of extreme deficit,” he said.
Prices were already expected to rise with increasing demand this time of year and summer-blend gasoline production. But the conflict has led to steeper increases in fuel prices. A Chevron in Los Angeles charged $8.21 a gallon, ABC7 reported.
“I drive Uber and they’re killing me right now, and I mean gas prices are so high… they were high before the war,” one driver told the outlet.
Donald Trump has dismissed concerns about the increase, arguing that prices “will go down very quickly” when the conflict ends, while his administration has insisted that the increases would last weeks rather than months.
White House press secretary Karoline Leavitt described the price rise as “a short-term disruption to the long-term gain of eliminating the Iranian terrorist regime and finally ending its restriction on the free flow of energy through the Strait of Hormuz.”
Californians pay more for gas than any other US state, mainly due to taxes, environmental regulations and a sharp decline in refining capacity. But Gavin Newsom’s office has said the blame for this increase lies solely with the president.
“Average gas prices in California have remained below $5 for nearly two years, so far,” the governor’s office said in a statement on social media. “This is because of Trump’s war with Iran.”
The Associated Press contributed reporting
