Key Points Data from the American Automobile Association (AAA) shows gasoline prices in California have exceeded $6 per gallon for the first time since 2023; prices in the state have surged 30% since the outbreak of the Iran conflict. Driven by rising crude oil prices, the national average for gasoline has increased by 27 cents within a week.

California's gasoline prices reached above $6 per gallon on Thursday. Since the U.S. and Israel initiated military action against Iran in late February, prices in California have climbed by a total of 30%. AAA data indicates the current average price for gasoline in California is $6.01 per gallon, the highest in the nation and the highest level since October 2023. Simultaneously, the average price for diesel in California on Thursday was approximately $7.50 per gallon, representing a 47% increase since the conflict began on February 28.

Diesel is crucial for economic activity, as trucks and trains reliant on diesel transport the wide range of goods needed for daily life. Spurred by a sharp rise in crude oil prices, the national average price for gasoline increased significantly by 27 cents over the past week. The national average gasoline price reached $4.30 per gallon on Thursday, compared to $4.03 per gallon a week earlier. Previously, market hopes for a ceasefire agreement between the U.S. and Iran had led to a brief dip in crude oil prices, and national fuel prices had experienced two consecutive weeks of slight decline. However, as the situation became clear—with Iran refusing to reopen the Strait of Hormuz, one of the world's most critical oil shipping routes—fuel prices have resumed their upward trend.