Spring break season is here, and Americans will pay the highest prices for gas for spring break since 2022. Crude oil prices have spiked due to the conflict in Iran and the halt of shipping through the Strait of Hormuz, and that’s resulting in skyrocketing gas prices. The national average has shot up 81 cents and the Oregon average 62 cents since the conflict began on February 28. The national and Oregon averages are at their highest prices since October 2023. For the week, the national average for regular rises 25 cents to $3.79 a gallon. The Oregon average jumps 28 cents to $4.54 a gallon.
To help offset rising prices, the U.S. announced it will release 172 million barrels of oil from its strategic reserves over four months. The move is part of a broader effort by the International Energy Agency to release a total of 400 million barrels of oil, the largest emergency release in its history. It’s too soon to know what kind of impact these planned releases will have on pump prices.
“Crude oil prices remain elevated, which is the major driver of rising gas and diesel prices. Oil prices spiked from about $67 per barrel the day before the conflict to around $95 per barrel this week,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “In addition, the normal seasonal factors are also putting upward pressure on pump prices, including refinery maintenance, the switch to more expensive summer-blend fuel, and the increase in demand for gas that we typically see this time of year.”
In general, every $1 increase in the price of crude oil leads to a 2.4- to 2.5-cent increase in the price of gasoline.
About 20% of the world’s oil and refined products flow through the Strait of Hormuz, which is the narrow passageway of the Persian Gulf and is bordered by Iran. Tankers traveling through the Strait of Hormuz carry oil from major producers in the Middle East including Saudi Arabia, Kuwait, Bahrain, UAE, Qatar, Iraq and Iran. Any disruption in the straight can impact global oil supplies. While the U.S. does not rely on Iranian oil, nations such as China and India do.
The Oregon average for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is today’s price of $4.54. The lowest price of the year so far is $3.33 on January 20.
The national average began 2026 at $2.83 a gallon. The highest price of the year so far is today’s price of $3.79. The lowest price of the year so far is $2.795 on January 11.
Demand for gasoline in the U.S. gasoline increased from 8.29 million b/d to 9.24 million for the week ending March 6. This compares to 9.18 million b/d a year ago. Total domestic gasoline supply decreased from 253.1 million barrels to 249.5 million. Gasoline production increased last week, averaging 9.9 million barrels per day compared to 9.3 million barrels per day the previous week.
Gas prices typically rise starting in mid-to-late winter and early spring as refineries undergo maintenance ahead of the switch to summer-blend fuel, which is more expensive to produce and less likely to evaporate in warmer temperatures. The switch occurs first in California, which is why pump prices on the West Coast often rise before other parts of the country. The East Coast is the last major market to switch to summer-blend fuel. Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend. Switch-over dates are earlier in California with some areas in the state requiring summer-blend fuel by April 1. Some refineries will begin maintenance and the switchover in February.
Gas prices usually drop in the fall, due to the switch from summer-blend to winter-blend fuel, which costs less to produce. The switch starts in September. Many areas, including Oregon, can sell winter-blend fuel starting September 15. However, Northern and Southern California require summer-blend fuel through October 31. Prices usually decline to their lowest levels of the year in late fall and early winter before increasing again in the late winter and early spring.
The U.S. price of crude oil (West Texas Intermediate) remains near four-year highs around $95 per barrel, due to supply disruptions caused by the conflict with Iran. WTI had mostly been in the upper $50s to mid-$70s since September 2024, and had mostly been in the $55 to $65 range for the past few months. Oil prices rose last month, in part driven by escalating tensions between the U.S. and Iran. Then crude oil prices shot up after the strikes on Iran by the U.S. and Israel. Any conflict with Iran can send oil prices higher, as Iran is a major oil producer and about a fifth of the oil consumed globally travels through the Strait of Hormuz between Iran and Oman.
WTI is trading around $96 today, compared to $83 a week ago and $68 a year ago. In 2025, West Texas Intermediate ranged between $80.04 (January 15) and $57.46 (October 16) per barrel. In 2024, WTI ranged between $66 and $87 per barrel. In 2023, WTI ranged between $63 and $95 per barrel. WTI reached recent highs of $123.70 on March 8, 2022, shortly after the Russian invasion of Ukraine, and $122.11 per barrel on June 8, 2022. The all-time high for WTI crude oil is $147.27 in July 2008.
Crude prices are determined in international markets, based on global supply and demand, and are impacted by economic news as well as geopolitical events around the world including the current conflict with Iran, economic uncertainty, the situation in Venezuela, tensions over Greenland, sanctions on Iran’s oil, unrest in the Middle East, the conflict between Israel and Hamas, and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia.
In addition, moves by OPEC+ impact crude oil prices. Production cuts by the cartel in previous years tightened global crude oil supplies, which continued to impact prices. But in 2025, the cartel boosted production which put downward pressure on crude oil prices. For the first quarter of 2026, OPEC+ said it would not have production hikes in the first quarter of this year due to lower demand. However, at its meeting on March 1, OPEC+ said it would boost oil production by 206,000 barrels a day in April. This may help mitigate the impact of the Iran conflict on oil prices.
Crude oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 51% of what we pay for in a gallon of gasoline is for the price of crude oil, 20% is refining, 11% distribution and marketing, and 18% are taxes, according to the U.S. Energy Information Administration.
Meanwhile, crude oil production in the U.S. remains at or near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in his country is at 13.68 million barrels per day for the week ending March 6. Production has been at 13.5 million barrels per day many times since October 2024. The U.S. has been the top producer of crude oil in the world since 2018 and has been increasing its oil production since about 2009.
Diesel
Diesel prices are rising faster than gasoline due to low global supplies and high demand for heating oil.
For the week, the national average rises 26 cents to $5.04 a gallon. This is the highest price for the national average for diesel since December 2022. The record high is $5.816 set on June 19, 2022.
The Oregon average jumps 45 cents to $5.48. This is the highest price for the Oregon average for diesel since November 2022. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.59 and the Oregon average was $3.84.
Source: AAA