Oil Jumps After U.S.-Israel Strikes on Iran, Gas Prices Tick Up
Mar 3rd 2026
Brent crude and U.S. pump prices climbed after U.S. and Israeli strikes on Iran and Iran's retaliation raised supply risk, with analysts warning diesel-driven inflationary pressure may follow.
- Brent crude traded near $77 per barrel, up from about $71 a week earlier and $66 a month ago.
- The U.S. national average gasoline price rose to roughly $3 per gallon, climbing 6 cents from last week and 12 cents from a month ago.
- GasBuddy expects gasoline to rise another 10 to 15 cents in the next week or two and to peak 25 to 40 cents above current levels.
- Gulf Oil forecasts spring gas peaks of $3.25 to $3.50 per gallon and warns diesel could reach $4 or higher in the second quarter.
- The market reaction followed U.S. and Israeli strikes on Iran, which both countries said killed Iranian Supreme Leader Ayatollah Ali Khamenei, and Iran's retaliatory strike on a Saudi refinery.
- Traders are monitoring shipping through the Strait of Hormuz and rising tanker insurance costs as key risks to supply.
- Analysts and lawmakers warn higher diesel prices could feed broader inflation through increased shipping and logistics costs.