Iran Conflict Causes Gas Prices in Texas to Surge 36% Year-Over-Year

A gallon of regular gas in Dallas costs $3.89 as of April 1—up from roughly a dollar ($2.86) from a year ago—and the sticker shock tracks with a statewide surge that ranks Texas fifth nationally for year-over-year increases. A new SmartAsset study found that regular gas across the state climbed 36.1 percent, while diesel went up 60.9 percent, with a gallon now running $5.11.

"Many states have experienced a 33 percent year-over-year increase in the cost of a gallon of regular gas — and in some places it's even higher," the study's author wrote. "Commercial and public programs may be feeling similarly pinched, with diesel prices upwards of $6.00 per gallon in many states."SmartAsset attributed the spike to the U.S. war on Iran and what it characterized as "subsequent pressure on the Strait of Hormuz." The national average for regular has reached $4.06; California leads at $5.89. Fort Worth and Arlington pumps are only slightly cheaper at $3.79 for regular and $5.09 for diesel.

Dallas hasn't reached its all-time high—AAA pegged that at $4.837 for regular in June 2022—but the trajectory is steepening. Oklahoma, at $3.27, remains the cheapest state in the country, a small consolation for North Texans who can't cross the Red River for every fill-up.

As far as a return to previous pricing, it will take a while. “It will take weeks, if not months, to re-open the Strait of Hormuz and for global oil production and prices to normalize,” Mark Zandi, chief economist at Moody’s Analytics, said in a Money report.