Trump’s war in Iran drove national gas prices above $4 per gallon, adding an estimated $456 per year to the average American driver’s fuel costs
Connecticut gas prices rose nearly 39% since the war began, with local ferry operators adding floating fuel surcharges adjusted weekly to fares
Energy analysts warn relief is unlikely to come quickly even if hostilities end, with Brent crude up 40% and Strait of Hormuz transit still disrupted
As Trump’s war in Iran stretches into its second month, people have seen an increase in prices at the pump. Energy analysts are warning that relief is unlikely to arrive quickly even if hostilities end.
According to AAA, the national average price for a gallon of gas reached $4.02. The price spike has added an estimated $38 per month to the average American driver’s fuel costs since the war began, roughly $456 per year.
The Center for American Progress (CAP) says these prices are increasing the squeeze on household budgets at a time when Americans already identify the costs of living among their top concerns.
The states hit hardest have been concentrated in the South and Mountain West. Utah saw the largest percentage increase at 51.7%, followed by Idaho at 45.7%, Tennessee at 45.6%, Mississippi at 45.4%, and Kentucky at 45%.
In Connecticut specifically, the price of gas before the war was $2.91 and the price today is $4.05, a 38.9% increase. The ripple effects are spreading beyond the pump: Connecticut’s two major ferry operators, the Bridgeport–Port Jefferson Ferry and the Cross Sound Ferry in New London, have both added floating fuel surcharges to their fares, adjusting them weekly based on fuel costs and market conditions.
Even a resolution to the Iran conflict may not quickly bring down the price of gas. According to Reuters, the estimated damage to energy assets across the Middle East from the ongoing war may ultimately cost up to $58 billion.
According to CAP, with transit through the Strait of Hormuz still risky, oil prices are likely to remain high. As of April 22, Brent crude exceeded $100 per barrel, 40% above its pre-war price. Energy analysts project prices will remain elevated through late this year.
Economists at the Federal Reserve Bank of St. Louis have described how oil and gasoline prices tend to move together asymmetrically, rising quickly when oil prices spike but falling slowly when they ease.
A recent CNBC survey of 1,000 Americans found nearly 80% have changed their spending habits in response to pain at the pump, and a majority expect the higher prices to last at least six months. The poll was conducted from April 15 to April 19.
For Connecticut residents, unfortunately the war costs are being felt not just at the gas station, but in ferry fares, grocery bills, and household budgets across the state. And until peace holds, the Strait of Hormuz reopens, and global oil markets stabilize, those costs are unlikely to go down fast.
By Michelle Rappaport
