Gas prices shoot back up above $4 Thursday after Trump’s primetime Iran speech

WASHINGTON — Gas prices jumped 14 cents overnight after a primetime address to the nation by President Donald Trump, where he warned the U.S. would continue to hit Iran hard with missile strikes and threatened to blow up the country’s oil-producing infrastructure. 

The national retail average for a gallon of regular gasoline was $4.081 Thursday, according to AAA. That’s up 14 cents from the $3.942 average Wednesday.

Tuesday was the first time since 2022 that average gas prices topped $4 a gallon. Prices remain significantly higher than a month ago, when gas averaged under $3.

Thursday’s price jump hit across the nation. Every state now has an average price of at least $3.27 per gallon, with the highest state averages reaching as much as $5.89.

Diesel prices also remain high after spiking earlier this week, adding pressure to transportation and supply costs.

California, Hawaii and Washington continue to lead the nation with the highest gas prices, while states such as Oklahoma, Iowa and Kansas have the lowest averages.

Prices began to rise sharply after the U.S. and Israeli attack on Iran on Feb. 28, which led to escalating tensions and military conflicts across the Middle East, where a large majority of global oil is sourced and distributed. 

While not the sole factor for rising costs, volatile trade routes and other uncertainties in production have led to higher prices of crude oil, which is refined to make diesel, gasoline and jet fuel. 

Crude oil has surpassed $100 per barrel several times in recent weeks, driving higher fuel costs. Rising diesel and jet fuel prices are also expected to increase transportation and air travel costs, potentially pushing up prices for goods across supply chains.

The Strait of Hormuz, through which roughly 20 percent of global oil passes, has effectively been closed off by Iran’s military for several days. The country faces mounting international pressure to reopen, including threats of military action by U.S. President Donald Trump.

The White House issued a statement Tuesday, essentially urging consumers to be patient. 

“When Operation Epic Fury is complete, gas prices will plummet back to the multi-year lows American drivers enjoyed before these short-term disruptions,” White House press secretary Karoline Leavitt said. “President Trump remains committed to fully unleashing American energy dominance, lowering costs, and putting more money back in the pockets of hardworking American families.”

Seasonal demand is also contributing to the increase, as warmer weather and spring break travel typically lead to higher gasoline consumption, according to AAA.

Though Iran has allowed a trickle of ships through the strait, it remains largely closed. Iran has also been repeatedly attacking Gulf Arab energy infrastructure, sending oil prices skyrocketing and giving rise to broader economic problems worldwide.

Following Trump’s speech, Brent crude, the international standard, rose again and was at $108 in early spot trading, up nearly 50% from Feb. 28 when Israel and the U.S. started the war with their attacks on Iran.

The rising energy prices and stock market jitters have been putting increasing domestic pressure on Trump, who used his address to offer a defense of the war while also suggesting it was close to winding down.

The president, in comments during a Easter lunch on Wednesday afternoon, said of Iran: “We could just take their oil. But you know, I’m not sure that the people in our country have the patience to do that, which is unfortunate.”

“Yeah, they want to see it end. If we stayed there, I prefer just to take the oil,” Trump said. “We could do it so easily. I would prefer that. But people in the country sort of say: ‘Just win. You’re winning so big. Just win. Come home.’ And I’m OK with that, too, because we have a lot of oil between Venezuela and our oil.”

The media was not permitted to watch the president’s remarks at the lunch, but the White House uploaded video of the speech online before taking it down. The White House did not return requests for comment from The Associated Press on the video and why it was taken down.

In a social media post earlier Wednesday, Trump maintained a belligerent tone, demanding that Iran stop blocking the Strait of Hormuz — the waterway vital to global oil supplies — or the U.S. would bomb the Islamic Republic “back to the Stone Ages.” The president has also said the U.S. “will not have anything to do with” ensuring the security of ships passing through Hormuz, an apparent backtrack from a previous threat to attack Iran’s power grid if it didn’t open the strait by April 6.

In a search for some relief, the International Energy Agency pledged to release 400 million barrels of oil from emergency stockpiles of member nations. That includes the U.S., despite Trump initially downplaying the need for reserve oil.

The Trump administration has also eased sanctions to free up some oil from Venezuela and temporarily from Russia. The White House also says it’s waiving maritime shipping requirements under a more than century-old law, known as the Jones Act, for 60 days.

It’s not yet clear if those efforts will bring relief for consumers. A lot of factors contribute to gas prices.

Refineries buy crude oil in advance, meaning some could work with more expensive oil for a while, and it will take time for any new supply to trickle down to consumers.

And while steep crude prices are a leading driver behind today’s surge, U.S. gas prices typically tick up a bit at this time of year. More drivers are hitting the road and trying to fuel up while they can, so there’s higher demand. Warming weather also brings a shift to summer blend fuel, which is more expensive to produce than winter blend.

The Associated Press contributed to this report.