The average price of gasoline in the United States ticked higher in August compared with July, as the war in Iran crossed the six-month mark and renewed fighting threatens to keep pressure on global energy markets.
The average price for all grades of gasoline rose to $4.192 per gallon in August, up from $4.064 in July, according to U.S. Energy Information. May recorded the highest monthly average at $4.609 per gallon, with the daily average peaking at $4.56 on May 21.
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Gas prices surged in the early months of the war after the U.S. and Israel launched a joint attack on Iran. Tehran responded by closing the Strait of Hormuz, a critical waterway between Iran and Oman through which roughly 20% of the world’s crude oil and refined fuel supplies pass.
The disruption sent energy prices soaring and transformed the strait into a critical negotiating point as Washington and Tehran have sought to de-escalate the prolonged war.
The increase has been felt by consumers at the pump. Crude oil accounts for more than half of the retail price of gasoline, according to the U.S. Energy Information Administration, meaning disruptions to global oil supplies can quickly translate into higher prices for American drivers.
The latest increase comes just 63 days before the 2026 midterm elections, which will serve as a major test for President Donald Trump and Republicans as Democrats fight to regain control of Congress.
Gas prices could complicate the administration’s affordability message. Trump and Republicans have made lowering the cost of living a central focus, but rising prices at the pump offer a complicated picture of the economy heading into November.
The party in power has lost an average of 21 House seats in midterm elections dating back to 1978, according to a Politico report. In election cycles when gas prices rose, that average loss increased to 32 seats. Trump’s approval rating has also remained below 40% in multiple polls during the war.
Meanwhile, the fighting with Iran resumed over the weekend following a monthlong lull.
The U.S. on Sunday launched airstrikes against Iranian rocket launchers on Larak Island, where U.S. Central Command said Iranian forces were preparing to launch rockets and deploy mines into the Strait of Hormuz. Iran retaliated Monday by attacking U.S. bases in Jordan and the United Arab Emirates.
Trump told Fox News on Monday that the U.S. would retaliate.
“We’re going to hit them hard. There will be a response,” Trump said, while claiming Iran wants to negotiate with the U.S. “so badly.”
The administration is looking for other ways to bring prices down.
Trump is expected to meet Tuesday with executives from oil refining and fuel distribution companies at the White House as his administration looks for ways to increase refining capacity and lower gasoline prices. Small, medium, and large refiners and distributors are expected to attend, along with Interior Secretary Doug Burgum, Energy Secretary Chris Wright, and National Energy Dominance Council Executive Director Jarrod Agen.
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The administration is also turning to Venezuela for additional oil supplies.
Trump announced Friday that the U.S. had secured majority control over more than 65 billion barrels of Venezuela’s proven oil reserves through a public-private arrangement intended to revive the country’s struggling oil industry and increase access to crude.
