U.S. Gas Prices Hit $4 a Gallon as U.S.-Iran War Resumes and Strait of Hormuz Shipping Collapses

On Monday, July 20, 2026, the average U.S. price for a gallon of regular gasoline reached $4.003, according to AAA data, returning to a level that heightens concern about consumer costs and inflation. The national average rose 13 cents in a week and stands 86 cents higher than a year earlier, when it was $3.14. Analysts link the spike to the breakdown of a Pakistani-mediated interim ceasefire between the United States and Iran, which had allowed a brief reopening of the Strait of Hormuz. Renewed hostilities and a U.S. naval blockade have sharply curtailed shipping, pushing Brent crude above $90 a barrel.