Oregon gas prices highest since Sept. 2025 as oil surges on Hormuz disruptions

PORTLAND, Ore. (KATU) — Crude oil prices surged after U.S. and Israeli strikes on Iran and stalled tanker traffic through the Strait of Hormuz, pushing gas prices sharply higher across the country, though Oregon and Washington are seeing smaller increases than many other states.

The national average price for regular gasoline jumped 43 cents over the past week to $3.54 a gallon.

Oregon’s average rose 31 cents to $4.26 a gallon, the 42nd-largest week-over-week increase among states.

Washington also increased 31 cents, ranking 44th-largest.

READ ALSO | Oil prices spike amid Iran war; Oregon gas remains above national average

The current national average is at its highest price since July 2024. Oregon’s average is at its highest since Sept. 2025.

“When crude oil prices shoot up, pump prices follow suit because crude oil is the basic ingredient in gasoline and diesel. It’s impossible to predict how high prices might go, but expect elevated oil and gas prices as long as the conflict in Iran continues and tankers are stalled in the Strait of Hormuz,” said Marie Dodds, public affairs director for AAA Oregon/Idaho.

AAA notes that, in general, every $1 increase in the price of crude oil leads to a 2.4- to 2.5-cent increase in the price of gasoline.

Crude oil typically accounts for about 47% of the cost of a gallon of gasoline, with refining at 16%, distribution and marketing at 20%, and taxes at 17%, according to the U.S. Energy Information Administration.

About 20% of the world’s oil and refined products flow through the Strait of Hormuz, a narrow passageway of the Persian Gulf bordered by Iran.

Tankers traveling through the strait carry oil from major producers including Saudi Arabia, Kuwait, Bahrain, the UAE, Qatar, Iraq and Iran. Any disruption can affect global oil supplies. While the U.S. does not rely on Iranian oil, China and India do.

Seasonal factors are also adding upward pressure. Gas prices typically rise starting in mid-to-late winter and early spring as refineries undergo maintenance ahead of the switch to summer-blend fuel, which is more expensive to produce and less likely to evaporate in warmer temperatures.

Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend. Some refineries begin maintenance and the switchover in February.

In Oregon, the average price for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is today’s $4.26, and the lowest was $3.33 on Jan. 20. Nationally, the average began 2026 at $2.83 a gallon. The highest price of the year so far is today’s $3.54, and the lowest was $2.795 on Jan. 11.

AAA reported that U.S. gasoline demand decreased from 8.73 million barrels per day to 8.29 million for the week ending Feb. 27, compared with 8.88 million a year ago.

Total domestic gasoline supply decreased from 254.8 million barrels to 253.1 million. Gasoline production increased last week, averaging 9.3 million barrels per day compared with 9.2 million barrels per day the previous week.

Crude oil prices have been volatile. West Texas Intermediate surged to near four-year highs around $95 per barrel this week but fell to the $80s today as President Trump signaled the conflict with Iran may end soon.

On the West Coast, all seven states remain in the top 10 for the most expensive pump prices nationally.

California has the highest average for the fifth week in a row at $5.29 a gallon and is the only state at or above $5.

Washington is second at $4.69, Hawaii third at $4.59, Nevada fourth at $4.30 and Oregon fifth at $4.26. Arizona averages $3.97 and Alaska $3.95.

All 50 states and the District of Columbia saw week-over-week increases. California had the largest jump at 62 cents, while Hawaii had the smallest at 19 cents. AAA said Oregon and Washington prices also rose last month after an outage of the Olympic pipeline.

The cheapest gas in the nation is in Kansas at $2.96 a gallon and Oklahoma at $3.01. Kansas is the only state with an average in the $2 range this week. The gap between the most expensive and least expensive states is $2.33 this week, up from $2.05 a week ago.

Compared with a month ago, prices are higher everywhere: the national average is up 62 cents and Oregon’s average is up 68 cents.

Compared with a year ago, the national average is up 45 cents and Oregon’s average is up 53 cents.

Diesel prices also spiked. The national average for diesel rose 89 cents over the week to $4.78 a gallon, while Oregon’s average jumped 72 cents to $5.02.

A year ago, the national average for diesel was $3.63 and Oregon’s average was $3.86.