American wallets felt the impact of the war in Iran on Friday after the March Consumer Price Index (CPI) report confirmed what drivers had already felt at the pump.
Gasoline prices posted their largest single-month increase since the Bureau of Labor Statistics first published the series in 1967, surging 21.2% in March as the conflict disrupted oil flows through the Strait of Hormuz.
That one number — gasoline — accounted for nearly three-quarters of the entire 0.9% monthly headline CPI increase, which is the steepest monthly jump since June 2022.
It is also the most direct measure yet of how a geopolitical shock 7,000 miles away is repricing life in the United States.
Chart: March Inflation Logs Highest Monthly Jump Since June 2022
From $2.98 To $4.15 – Trump Broke The Pump
On Feb. 26 — the day before the Iran war began — the national average price for regular gasoline stood at $2.98 per gallon, according to AAA data.
It now stands at $4.153. That is a 39% increase in roughly six weeks, the fastest peacetime gasoline price shock in modern American history.
Think of it this way: the average American drives about 15,000 miles a year and gets around 28 miles per gallon.
At $2.98, that was a roughly $1,600 annual fuel bill. At $4.15, it is now $2,200. The war has cost the average driver an extra $600 a year — and counting.
The energy index as a whole surged 10.9% in March — its largest monthly move since September 2005. Beyond gasoline, fuel oil rose 30.7%, its sharpest monthly climb since February 2000.
Airline fares jumped 2.7%, the first visible signal of jet fuel costs passing through into consumer services, with jet fuel prices up 75% since the start of the war according to Goldman Sachs.
AAA National Pump Prices — April 10, 2026
| Grade | Current Avg. |
|---|---|
| Regular | $4.153 |
| Mid-Grade | $4.668 |
| Premium | $5.033 |
| Diesel | $5.683 |
| E85 | $3.303 |
What Are Economists Saying?
Jeffrey Roach, chief economist at LPL Financial, said “at least eighty percent” of the 0.9% monthly CPI increase was energy-related, rising even higher if airfares are included given transportation’s 16% weight in the index. …
