California gasoline prices reached $5.66 a gallon on Friday, March 22, 2026, as the war in Iran continues to disrupt global oil supplies and widen the gap between crude oil futures and the price consumers pay at the pump.
The global Brent crude benchmark has jumped more than 50% to around $112 a barrel, driven by the near-complete closure of the Strait of Hormuz and attacks on energy facilities in the Middle East, according to Bloomberg reporting. However, the cost of refined products – gasoline, diesel, and jet fuel – is increasing at an even faster rate, as refiners in Asia compete for limited supplies at significant premiums.
The disconnect between futures markets and physical oil prices is partially attributed to U.S. Government efforts to control prices through emergency stockpile releases and sanctions adjustments, which analysts say have had limited effect. Jet fuel prices have surpassed $200 a barrel, prompting major European airlines to announce plans to pass the increased costs onto passengers.
The war’s financial impact on the U.S. Has already exceeded $18 billion, according to estimates from the Center for Strategic and International Studies, with costs increasing by roughly $500 million per day. As of March 19, 2026, more than 3,000 people are believed to have been killed in Iran, and the Pentagon reports having targeted over 15,000 sites within the country in the first two weeks of the conflict. A strike on a girls’ school in Minab, Iran, is believed to have killed approximately 175 children and teachers.
Beyond fuel costs, the conflict is expected to contribute to a broader cost-of-living crisis for American families, impacting grocery prices as well. Rising oil prices are driving up the cost of transportation and production for a wide range of food products, from coffee to berries, according to Forbes reporting.
The White House has not provided its own cost estimate for the war, and requests for comment from the Pentagon and U.S. Central Command were directed to each other. Administration officials have indicated that the impact on consumers will be a series of ongoing price shocks rather than a single, isolated spike.
As of Saturday, March 22, 2026, the Strait of Hormuz remains effectively closed, and no diplomatic initiatives to reopen the waterway have been publicly announced.
