- The national average price of gas has returned to $4 per gallon.
- That’s 86 cents more than a year ago and up 13 cents from last week.
- Prices have climbed as ships came under attack and US retaliated.
The national average price for a gallon of gasoline has hit $4 per gallon as the uneasy truce between Iran and the United States has disintegrated into a shooting match. This has effectively closed the Strait of Hormuz once again, bringing shipments of oil to a virtual standstill.
According to AAA, regular unleaded is up from $3.87 a week ago and $3.95 a month ago. More importantly, in 2025, drivers were only paying $3.14 per gallon.
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Diesel prices have also climbed significantly and they’re averaging $5.11. That’s an increase of 23 cents in a week and $1.38 in a year.
As usual, prices vary significantly by location and Californians are paying an average of $5.50 per gallon. In some areas of the Golden State, such as Mono County, gas is averaging $6.70.
It’s a vastly different story in Indiana, where the statewide average is just $3.35 per gallon. Even in the priciest areas, gas can be had for less than $3.50 there.
Average Cost Per Gallon July 20, 2026
AAA
Iran Developments
The spike in gas prices can be chalked up to the resumption of hostilities in the Middle East. Over the past several days, Iran has attacked ships, neighboring countries, and American military installations in the region.
Around 4 pm today, U.S. Central Command announced new strikes against Iran designed to “further degrade Iranian military capabilities used to attack commercial shipping in the Strait of Hormuz.” This marks the tenth consecutive day of attacks and it comes after a deadly weekend for American military personnel in the region. Two service members were killed in Jordan on July 17 and a third is listed as missing. Another service member was killed in Iran, on the 18th, during a controlled detonation of an unexploded Iranian drone.
President Trump lashed out over the deaths and proclaimed, “Every time Iran kills an American soldier they will pay for that killing many times over!”
For their part, Iran Foreign Minister Seyed Abbas Araghchi said, “Iran is our homeland” and “we will defend every inch of our land until our very last breath.”
