Gas prices soar by 21% as government inflation figures reflect Trump’s war on Iran

By Ashley Murray
Iowa Capital Dispatch

WASHINGTON — Spikes in energy prices caused by the U.S.-Israeli war in Iran drove up inflation for Americans in March, according to the latest consumer price index figures released Friday.

Costs jumped 0.9% in March compared to the previous month — that’s up from the 0.3% increase in February.

Prices for all items together, including food, energy, shelter and other commodities like vehicles, rose by 3.3% from a year ago. That’s the highest annual jump since May 2024, according to Bureau of Labor Statistics historical data.

Fuel costs drove the spike, with gasoline and fuel oil together rising 10.9% in March compared to the previous month. Singled out, gas prices jumped 21.2% in March. The cost for airfare, largely driven by jet fuel prices, rose 2.7% in March, up from the 1.4% jump in February.

President Donald Trump launched the joint war in Iran with Israel on Feb. 28. In response to the intense bombing campaign that killed the country’s supreme leader and numerous senior officials, the Iranian regime effectively closed the Strait of Hormuz, a narrow passage in and out of the Persian Gulf vital to the transport of one-fifth of the world’s petroleum.

As of Friday, Americans were paying $4.15 on average nationwide for a gallon of regular gas, according to AAA. The average for diesel across the U.S. is $5.68 per gallon.

Prior to the war, a gallon of regular hadn’t topped $3 all year.

Iran’s de facto takeover of the Strait of Hormuz by threatening to strike any tankers, other than a handful from friendly countries, has caused the largest supply disruption in the history of the global oil market, according to the International Energy Agency.

Despite a tenuous ceasefire agreed to Tuesday evening Eastern time, Iran is still controlling the strait. Ten oil tankers transited the waterway Tuesday, and only one on Wednesday, according to the latest figures available from the Joint Maritime Information Center, which tracks tankers and cargo ships worldwide that are transmitting location data.

Prior to the war, roughly 140 vessels daily flowed freely through the Strait of Hormuz.

Dems pounce on affordability issue

Democrats blamed Trump Friday for higher inflation, as affordability is emerging as perhaps the single-most important issue ahead of the 2026 midterm elections in November that will determine control of Congress.

Democratic National Committee Chair Ken Martin said the president is “pushing working families to the brink.”

“Trump promised to ‘lower prices on Day One,’ and instead he waged an unhinged trade war and started an unpopular war with Iran — and what have Americans gotten in return? Nothing except even higher prices. Americans are sick and tired of this president putting his own interests first and using their hard-earned dollars to fund his war instead of making health care more affordable or expanding access to child care,” Martin said in a statement Friday morning.

White House senior deputy press secretary Kush Desai responded to the inflation figures, saying the president “has always been clear about short-term disruptions as a result of Operation Epic Fury, disruptions that the Administration has been diligently working to mitigate.”

“Although gas and energy prices are seeing volatility, prices of eggs, beef, prescription drugs, dairy, and other household essentials are falling or remain stable thanks to President Trump’s policies. As the Administration ensures the free flow of energy through the Strait of Hormuz, the American economy remains on a solid trajectory thanks to the Administration’s robust supply-side agenda of tax cuts, deregulation, and energy abundance,” Desai wrote in a statement Friday morning posted on social media.

Other costs

The price index for food consumed at home decreased 0.2% compared to the previous month, but increased 1.9% from a year ago.

The costs of fruits and vegetables rose 1% in March compared to the previous month, but prices for meat, poultry, fish and eggs declined 0.6%, according to the latest BLS figures.

The price index for items minus food and energy rose 0.2% in March, matching the increase in February. The cost of all items, less food and energy, rose 2.6% over the past 12 months.

This story was originally published April 10 on the Iowa Capital Dispatch website. Iowa Capital Dispatch is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.