Gas Prices Start Inching Up on Iran/Israel Attacks, More Increases Coming

For the first time since May, the nation’s average price of gasoline has increased, rising 1.1 cents compared to a week ago and stands at $3.08 per gallon, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 9.5 cents from a month ago and is 32.7 cents per gallon lower than a year ago. The national average price of diesel has increased 4.0 cents in the last week and stands at $3.488 per gallon.

“With Israel and Iran trading attacks, oil prices have surged to multi-month highs — setting the stage for additional price hikes at gas pumps across the country,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “As long as tensions in the Middle East continue to escalate, the risk of further impacts on oil prices remains high. For now, I expect gas prices could rise by 10 to 20 cents, while diesel could climb 15 to 25 cents in the coming days. Motorists should prepare for what will likely be modest price increases — for now — but the situation has the potential to worsen at any moment.”

OIL PRICES

After Israel launched surprise attacks on Iran, oil prices surged last week. “The oil market has reacted strongly to the Israel-Iran conflict; so far, however, no supply has been disrupted, but just a risk premium added due to supply disruption concerns. Risk premia tend to fade if there are no disruptions,” said Giovanni Staunovo, UBS commodities analyst, in an e-mail. In early Monday trade after seeing intense action, WTI crude was down $1.13 per barrel to $71.85 per barrel after rising nearly 5% in Sunday evening trade, a sharp rise from last week’s $64.73 per barrel start. Brent crude was also down $1.11 to $73.12 per barrel in early Monday trade, but still a large jump from last week’s $65.44 per barrel start. Energy markets will likely be extremely focused on developments in the Middle East, but if and when risk begins to fade and action slows, oil prices may ultimately head lower again.

OIL AND REFINED PRODUCT SUPPLIES

The EIA’s Weekly Petroleum Status Report for the week ending June 6, 2025, showed U.S. oil inventories fell by 3.6 million barrels, and are about 8% below the seasonal average for this time of year, while the SPR rose 200,000 barrels to 402.1 million. Gasoline inventories rose by 1.5 million barrels and stand 2% below the five-year seasonal average, while distillate inventories rose 1.2 million barrels and are about 17% below the five-year seasonal average. Refinery utilization rose 0.9 percentage points to 94.3%, while implied gasoline demand, EIA’s proxy for retail demand, rose 907,000 bpd to 9.170 million barrels per day.

GAS PRICE TRENDS

The most common U.S. gas price encountered by motorists stood at $2.99 per gallon, unchanged from last week, followed by $2.89, $2.79, $3.19, and $3.09, rounding out the top five most common prices.

The median U.S. gas price is $2.95 per gallon, up 1 cent from last week and about 13 cents lower than the national average.

The top 10% of stations in the country average $4.38 per gallon, while the bottom 10% average $2.53 per gallon.

The states with the lowest average prices: Mississippi ($2.64), Tennessee ($2.66), and Oklahoma ($2.68).

The states with the highest average prices: California ($4.57), Hawaii ($4.44), and Washington ($4.31).

Biggest weekly changes: Indiana (+17.1¢), Florida (-11.4¢), West Virginia (+10.6¢), Virginia (+10.4¢), Pennsylvania (+9.6¢)

DIESEL PRICE TRENDS

The most common U.S. diesel price stood at $3.39 per gallon, unchanged from last week, followed by $3.29, $3.49, $3.19, and $3.59, rounding out the top five most common prices.

The median U.S. diesel price is $3.39 per gallon, up 4 cents from last week and about 9 cents lower than the national average.

Diesel prices at the top 10% of stations in the country average $4.55 per gallon, while the bottom 10% average $2.86 per gallon.

The states with the lowest average diesel prices: Texas ($2.98), Oklahoma ($3.09), and Mississippi ($3.10).

The states with the highest average diesel prices: Hawaii ($5.20), California ($4.97), and Washington ($4.65).

Biggest weekly changes: Iowa (+13.8¢), South Dakota (+13.8¢), New Mexico (+12.2¢), South Carolina (+10.7¢), Louisiana (+8.5¢)