By David Uberti

Americans' prices at the pump are climbing at some of their fastest daily increases of the Iran war. The latest uptick in energy inflation doesn't stem from oil costs alone.

The average U.S. price of regular gasoline hit $4.23 Wednesday, according to AAA, a nearly 12-cent jump since the start of the week.

Oil prices' ongoing rise is complicating the outlook for the Federal Reserve. On Wednesday, crude futures jumped 5% after The Wall Street Journal reported that President Trump told aides to prepare for an extended blockade of Iran.

But fuel analysts say the new round of retail sticker shock for drivers in recent days doesn't stem from crude costs alone. Gas stations are also attempting to regain margins that were hammered after the conflict sent wholesale fuel costs surging.

U.S. gas stations' average margins excluding credit-card fees and taxes veered below 15 cents a gallon in recent days, according to OPIS. That's down from an average of nearly 40 cents a gallon in 2024 and 2025.

The upshot is that drivers will likely see more price hikes to come as gas stations try to claw back profits. "You could see a 20-cent increase even if there were a moratorium on oil price increases," Tom Kloza, chief energy adviser at Gulf Oil, said Tuesday.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

April 29, 2026 11:14 ET (15:14 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.