Prices Jump Faster in the Golden State
Gasoline prices in California have climbed sharply since the conflict involving Iran intensified, widening the gap between the state and the national average, according to data from the American Automobile Association (AAA). AAA said the statewide average reached $5.20 per gallon on Monday, versus a U.S. average of $3.47.
The national average rose by nearly $0.50 since the fighting began more than a week ago, AAA data showed. California’s average increased slightly more, by about $0.55, reinforcing the state’s position as the most expensive major gasoline market in the country.
Oil Shock Spreads Through Supply Chains
The run-up follows a surge in crude prices after U.S. and Israeli strikes on February 28 triggered escalating violence across the Middle East. Oil rose above $100 a barrel for the first time in nearly four years, as attacks damaged energy facilities and disrupted shipping.
Roughly 20% of the world’s oil typically transits the Strait of Hormuz each day, but the route has effectively been closed for about a week, according to the information provided. Claudio Galimberti, chief economist at Rystad Energy, said about 9 million barrels per day have been knocked offline due to direct damage or precautionary shut-ins, pushing markets into what he described as an “extreme deficit.”
Pump Sticker Shock Meets Seasonal Pressures
Fuel costs were already expected to rise heading into the spring driving season, when demand typically strengthens and refiners shift to summer-blend gasoline. The conflict has accelerated those increases. One Los Angeles station was reported charging $8.21 per gallon, highlighting how quickly localized pricing can spike during supply stress.
For drivers who depend on fuel-intensive work, the move is immediate. An Uber driver told local media that higher prices were cutting into earnings, noting costs were elevated even before the war.
Politics and Policy Collide Over Who Pays
The White House has argued the price shock will be temporary. Donald Trump said prices will “drop very rapidly” when the conflict ends, while officials framed the jump as a short disruption tied to security goals in the region. Press secretary Karoline Leavitt described the rise as a short-term hit connected to restoring the “free-flow of energy” through Hormuz.
California has long faced structurally higher gasoline prices than other states, driven by factors including taxes, environmental rules, and reduced refining capacity. But Governor Gavin Newsom’s office blamed the latest move on the conflict, saying statewide averages had stayed below $5 for nearly two years until the recent escalation.
