Gas Prices Top $4 Nationwide as Iran Tensions Hit Markets and Businesses

Rising fuel costs tied to Middle East conflict are adding pressure on household budgets and corporate margins at a moment when broader economic signals remain mixed. US stocks and bonds fell as investors weighed higher inflation risks against ongoing consumer resilience. The national average for regular gasoline reached $4.56 a gallon this week, according to AAA data cited across multiple reports, marking a 43 to 53 percent increase from year-earlier levels depending on the exact comparison date.

The surge follows the closure of the Strait of Hormuz after the start of hostilities with Iran in late February. Small-business profitability dropped 1.3 percent in April, the steepest decline in two years, according to the Bank of America Institute. That report also noted small businesses spent 31 percent more on gasoline than a year earlier while sales growth slowed despite stronger overall consumer spending. Labor costs and inflation concerns appear alongside energy prices in the same data set.

Regional differences remain sharp. California averaged $6.15 per gallon while Georgia posted the lowest state average at $4.01, AAA figures show. No state remains below $4. GasBuddy analyst Patrick De Haan warned the national average could exceed $5.03 if the shipping lane stays blocked into summer. Consumer confidence posted only modest gains amid these crosscurrents.

Target reported first-quarter results that beat analyst estimates, with same-store sales rising 5.6 percent and net sales up more than 6 percent year over year. The retailer raised its full-year revenue outlook but cited macroeconomic uncertainty, including elevated fuel prices, as a continuing headwind. Shares edged higher in premarket trading after the release.

Democratic lawmakers have attributed the price spike primarily to the decision to engage in the conflict, while administration officials have pointed to supply disruptions beyond direct policy control. Futures markets and refinery data from the Energy Information Administration show additional influences that some coverage has not quantified.