Gasoline prices surged by 18.9 percent in March 2026 compared to March 2025, according to new data released by the Bureau of Labor Statistics, as measured by the Consumer Price Index. This increase was largely driven by a spike in crude oil prices following the closure of the Strait of Hormuz amid the ongoing U.S.-Israeli war with Iran. From February to March, gasoline prices rose by 21.2 percent, marking the largest monthly increase on record. Gas prices are expected to keep rising only as long as the conflict persists.
The top contributors to transportation-related inflation last month were gasoline and airline fares. On the other hand, used cars and trucks saw a price drop of 3.2 percent compared to the previous year.
In early April, U.S. consumer sentiment fell to a record low, with the University of Michigan's Consumer Sentiment Index dropping to 47.6 percent, marking a lower point than the Great Recession of the Covid-19 pandemic. Open ended comments indicated that many blamed the U.S.-Israeli war with Iran for the hikes. The figure is lower than during the Great Recession and the pandemic. It is important to note that this survey was conducted before the announcement of the two-week ceasefire.
