Fuel prices surge amid ongoing Iran war

Fuel prices in the United States and Germany have seen significant increases driven by the conflict in Iran that began in February 2026. In the U.S., national gasoline prices reached an average of 4.06 USD as of August 16, 2026, representing a nearly 30 percent increase compared to the previous year. This surge is attributed to supply disruptions and the effective closure of the Strait of Hormuz.

U.S. President Donald Trump has called on Americans to accept these higher costs as a ‘patriotic sacrifice’ for the ongoing war. Despite public sentiment favoring an end to the conflict, fuel costs continue to climb, with Americans projected to spend billions more on gasoline than in the prior year.

In Germany, the impact of the conflict is reflected in volatile oil prices and high costs at the pump, where diesel and gasoline often exceed two euros per liter. Fuel prices are composed of procurement costs, influenced by global crude oil prices and the dollar exchange rate, as well as taxes and levies—including VAT, energy tax, and CO2 levies—which account for approximately half of the total price.