US gas prices see their biggest one-day jump in months as Iran war spooks market

Gas prices have spiked in response to President Donald Trump’s resumed attacks on Iran.

On Thursday, the average gas price in the U.S. spiked by five cents per gallon to nearly $3.85, according to data from AAA.

The U.S. military said it hit approximately 90 targets in an attack on Iran on Wednesday. Trump said he considers the ceasefire between the U.S. and Iran “over.”

Thursday’s price spike is the biggest single-day increase since May 6, according to CNN.

The spike ends more than a month of steadily decreasing gas prices. The average cost of gas dropped more than 70 cents from its peak earlier this year. That decline was driven largely by the Memorandum of Understanding that temporarily cooled the conflict between the U.S. and Iran.

Thursday’s spike followed a 6 percent surge in gasoline futures on Wednesday in response to the attacks. Gas futures continued to rise by a percentage point on Thursday.

Oil futures also spiked on Wednesday but remained largely the same on Thursday. Brent crude — a global benchmark for crude oil prices — increased by 0.3 percent to just under $78 per barrel, before dropping the next day. U.S. oil prices rose 0.2 percent to just below $74 per barrel on Wednesday.

Despite the price decrease following the MOU agreement, U.S. gas prices are still much higher than they were at the start of the war. As of Thursday, gas is still nearly an entire dollar more expensive than it was before Trump and Israel initiated the conflict in Iran.

Trump has tried to stave off the frustration Americans feel over high gas prices by telling gas station owners to offer fuel at lower prices. He’s also been promoting a private gas station chain called “Freedom Fuel” on Truth Social.

Freedom Fuel, which is mostly located in and around Philadelphia, offers drivers fuel at around $3.48, which is below both the market and wholesale cost of gas, according to CNN.

“This retailer is taking the lead, and others should follow,” Trumps wrote on Truth Social on July 3. “Gas prices at the pump are dropping …but not as fast as they should be.”

A White House spokesperson told CNN that the Trump administration was not subsidizing the gas station chain and said the business was cutting into its profit margins to offer the gas at a lower rate.

“The administration is not involved in the company, nor has the administration given the company any funding. There is no other entity or person subsidizing the lower gasoline costs,” the spokesperson reportedly said. “They are simply reducing their margin to make prices at the pump more affordable for drivers in Philadelphia and New Jersey.”

However, it was reported that one of the gas stations was selling fuel at a higher price than the same location was selling for in the months before Trump returned to the White House.

Trump’s decision to continue hostilities with Iran could ensure that gas prices remain high for the time being.

The Independent has requested comment from The White House.