Oil shock pushes U.S. gas prices higher as Iran conflict escalates

U.S. gas prices climbed to an average of about $3.48 per gallon as oil spiked amid Iran-Israel tensions, with California at around $5.20 and Kansas near $2.92. Diesel rose to about $4.66. Oil benchmarks briefly neared $120 a barrel before retreating, and analysts say prices could stay elevated into fall due to Hormuz disruptions and stronger seasonal demand, potentially hovering near $4/gal. The war’s energy impact could fuel inflation, though higher-income spending may cushion overall effects.