Gas Prices Spike to Four-Year High

Negotiations to end the war have stuttered and oil prices are spiking.

Written by

Co-written by

Edited by

Edited by other Updated May 4, 2026 SOME CARD INFO MAY BE OUTDATED

This page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer.

Updated on May 4. Updated on May 4. The average regular gas price in the U.S. as of May 4 is $4.457 per gallon, according to AAA. One week ago: $4.111 One week ago: One month ago: $4.104 One month ago: One year ago: $3.165 One year ago: Gas prices have hit their highest level in four years, according to AAA, as shipping disruptions continue in the Strait of Hormuz. Oil prices have been rising again in the past two weeks as a durable end to the Iran War proves elusive. A ceasefire began on April 8 and has been extended indefinitely, but on-again, off-again negotiations have not yet yielded a breakthrough. All shipping movement through the Strait of Hormuz is closed for now. On May 4, the U.S. said it would try to help stranded ships move through the area, but provided few details. Iran responded with threats against U.S. forces and commercial ships trying to pass. After reaching nearly $110 in the weeks after the war began, prices eased back down into the $90 range in early April as the White House signalled progress in talks to end the fighting and reopen the Strait of Hormuz. But as talks have broken down, and the price for Brent crude is once again trading above $113 per barrel as of this update. Gas prices are expected to rise as oil spikes. On Feb. 28, the first day of the U.S.-Israeli attacks on Iran, the average was just under $3. The text and charts below are fully updated weekly. Since the U.S. and Israel launched strikes on Iran on Feb. 28, the widening conflict has roiled global energy markets, shaken investor confidence and pushed average gas prices up to their highest levels in four years. Brent crude — the global benchmark — has moved sharply up and down with each new twist in the war, generally trading around $95 but spiking well above $100 per barrel at times. It traded below $70 as recently as mid-February and was below $80 when the conflict began. It marked the first time oil has traded above $100 since 2022, when Russia invaded Ukraine. If the war continues into the summer, oil could reach $200 per barrel, according to analysts from Macquarie Group, an investment banking company. On April 14, the International Monetary Fund cited effects of the war as it cut its global growth forecasts for 2026, and warned that further escalation in the war could trigger “a close call for a global recession.” The U.S., despite being the world’s largest producer of oil, can see gas prices rise in response to any shock to the world’s oil supply.

What are gas prices like right now?

As of May 4, gas prices have continued slowly rising again after a slight decline in early April. This followed a period when weeks of daily price hikes brought the national average for a gallon of regular to over $4, according to AAA, which tracks fuel costs. State averages range from $3.859 in Georgia to $6.114 in California. Gas prices were below $3 in 39 states in February. Refineries are beginning to switch back to producing a summer blend, which is more expensive than the winter blend, which could contribute to rising prices soon. The U.S. Energy Information Administration says the falling price of crude oil — accounting for half of retail gas prices — helped lower prices at the pump in 2025. On a monthly average basis, the price of Brent crude oil dropped from $79 per barrel in January 2025 to $63 per barrel in December 2025 — its lowest average monthly price since the start of 2021, according to the EIA. Pump prices were stable over the summer and fell in the fall and winter, especially compared to recent years. Oil prices moderated at around $65 a barrel after spiking briefly in June 2025 in response to the Israel-Iran conflict, and were below $60 at the beginning of the year. They have risen sharply since the war began. » Stay informed: Stay informed: Check out NerdWallet's news hub for all the latest. Subscribe to one of NerdWallet's free newsletters.

Meet MoneyNerd, your weekly news decoder

So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.

Gas price inflation, explained

Gas prices surged in 2021 and 2022, largely due to two economic disruptions: pandemic-related supply shocks and then Russia’s invasion of Ukraine. The combination of the two hit energy markets hard and prices never recovered to pre-pandemic levels. Here’s what happened: In 2019, before the pandemic, the average per-gallon price of regular gas was $2.601, according to EIA data. Following Russia’s invasion of Ukraine, the national average increased before peaking at $5.016 per gallon on June 14, 2022, according to AAA. Until the Iran invasion, gas prices had retreated, but hadn’t returned to pre-pandemic levels.

Why gas prices remain higher than they used to be

At this time of year, seasonal factors play a considerable role in raising gas prices. A scheduled switch to summer-blend gasoline temporarily elevates prices through the warm months. Inflation, supply-chain disruptions and gas tax hikes can factor into higher prices, as well. But in the end, elevated oil prices are the main culprit. The cost of oil typically represents more than half of the cost of a gallon of gasoline, according to the U.S. Energy Information Administration (EIA). So, a major reason gas prices have remained so high is that, until recently, oil prices were higher than they were before the pandemic hit in 2020 and Russia invaded Ukraine in 2022. That’s based on the average monthly price of West Texas Intermediate crude, which is used as the benchmark for oil prices in North America. For much of the year to date fuel costs had been lower than they were a year ago. That has changed dramatically in the last few weeks. Here’s how gas prices compare today: As of May 4, the average regular gas price in the U.S. is $4.457 per gallon, according to AAA, which tracks gas prices. The price is up from $4.111 a gallon a week ago. The price is up from $4.104 per gallon a month ago. A year ago, the price was $3.165 per gallon. Oil prices are still below their June 2022 peak of almost $120 per barrel.

Average gas price per state

The average gas price per state varies widely, with the most expensive state typically costing about $2 more per gallon of regular than the least expensive state. (Photo by Joe Raedle/Getty Images) Explore more on About the authors Helhoski Anna Helhoski is a senior writer covering economic news and trends in consumer finance at NerdWallet. She is an on-air contributor and producer of Money News segments for NerdWallet's Smart Money podcast. She is also an authority on student loans. She joined NerdWallet in 2014. Her work has been syndicated in news outlets nationwide including The Associated Press, The New York Times, The Washington Post, The Los Angeles Times and USA Today. She previously covered local news in the New York metro area for the Daily Voice and New York state politics for The Legislative Gazette. She holds a bachelor's degree in journalism from Purchase College, State University of New York. Published in Phaneuf Taryn Phaneuf is a lead writer & content strategist covering wealth management, financial planning and other investing topics at NerdWallet. She previously reported on personal finance news. Prior to joining NerdWallet, she spent more than a decade covering education, public policy and business for various news outlets. She also taught journalism as an adjunct instructor at her alma mater, the University of Minnesota. She lives in Minnesota. Published in Why Is Everything So Expensive? Current U.S. Inflation Rate is 3.3%: Chart and Why It Matters Will Prices Ever Go Down? For Some Things, They Already Have Egg Prices Continue to Drop By Taryn Phaneuf Trump’s Tariffs Begin: Here’s What Could Get More Expensive By Taryn Phaneuf Austin Is Booming. So Why Are Rents Falling? By Taryn Phaneuf Can Trump Lower Gas Prices as President? By Taryn Phaneuf Why Is My Car Insurance So High? By Kayda Norman, Ryan Brady, CFP® Travel Inflation Report: April 2026 By Sally French, Benjamin Din Are Car Prices Going Up or Down? By Shannon Bradley How to Shop Amid Tariff Uncertainty By Kimberly Palmer Southwest Ditches Free Bags, Adds Basic Fares By Craig Joseph