Sky-high gas prices are already hitting the economy

Gas prices across the US jumped sharply as tensions in the Middle East escalated, driven by the Iran war and a spike in oil prices. AAA reported the national average rose to $3.63 a gallon on Friday, up from $2.93 last month, and for the first time since 2023 fuel is now above $3 a gallon in every state.

The higher pump prices are squeezing household budgets and changing behavior on the road. Drivers for Uber and Lyft say they are becoming more selective about rides because platforms control fares, leaving them unable to raise prices when their own operating costs climb.

Many are skipping short, lower‑paying trips in favor of longer rides that better cover fuel expenses. Electric-vehicle owners are feeling less pain at the pump. Charging costs have not risen in step with oil prices, giving EV drivers — including those on rideshare platforms — a clear cost advantage and prompting what some have called a “victory lap.” Rising fuel costs are also affecting the return-to-office debate: pricier commuting can amount to a pay cut.

United States

gas prices, oil prices, aaa, uber, lyft, rideshare drivers, electric vehicles, ev charging, commuting costs, iran war