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The rapid rise in gasoline prices is starting to hit consumer pockets.
On Monday, the national average at the pump rose above $3.71 per gallon, an increase of $0.25 from a week ago and $0.80 from more than one month ago, according to AAA data.
The impact of rising fuel costs on drivers' wallets is adding up.
"Americans today will spend $300 million more on gasoline than they did 30 days ago," Patrick De Haan, head of petroleum analysis at GasBuddy, wrote on Sunday.
Americans consume roughly 375 million gallons of gasoline a day, according to the Energy Information Administration. A mere one-penny increase adds a total of $3.75 million to drivers' daily costs.
Read more: What an extended war with Iran could mean for gas prices
GasBuddy data shows current gasoline prices are higher than they were 78% of days between January 2021 and January 2025, not adjusted for inflation.
"Lower and middle income households will see a disproportionate shock to their budgets as gas prices continue to rise," RBC Capital Markets analysts said in a note last week.
Higher fuel costs threaten to wipe out any tax savings from the Trump administration's One Big Beautiful Bill Act (OBBBA).
"We have previously acknowledged that OBBBA will add to consumer spending capacity to varying degrees," the RBC analysts wrote. "These higher energy prices could offset the positive impact of OBBBA, nearly entirely."
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Gasoline and diesel prices have soared as the US–Israel war with Iran enters its third week and traffic in the Strait of Hormuz, a critical pathway for global oil flows, remains near a standstill.
Until there is a meaningful resumption of oil flows, upward pressure on fuel prices is likely to persist.
"At the same time, seasonal forces are beginning to intensify as several regions complete the transition to summer gasoline, creating a double headwind that could continue driving pump prices higher in the weeks ahead," GasBuddy's De Haan said.
Oil prices are more than 33% higher than when the war began on Feb. 28.
On Friday night, the US struck military targets on Kharg Island, a small territory roughly one-third the size of Manhattan that serves as Iran’s main crude export terminal. President Trump warned that Iran’s energy assets would be targeted if Tehran continues to block shipments.
Strategists say prices could rise further the longer the war lasts.
RBC Capital Markets estimates that oil could exceed the $128 per barrel high reached after the Russian invasion of Ukraine if the conflict lasts three to four more weeks. If the war extends for several months, prices could surpass the 2008 peak of $146 per barrel, said the analysts.
