Crude oil prices climbed more than $11 last week as tensions continued to escalate across the Middle East following the July 8 breakdown of the ceasefire agreement that had helped calm oil and gas markets. By the close of markets on Friday, the price for a barrel of West Texas Intermediate (WTI) settled above $81 and Brent crude finished at $88, as markets reacted to fresh U.S. and Iranian attacks and announcements from both sides regarding the closure of the critical Strait of Hormuz.
Higher crude prices aren’t the only factor putting pressure on prices at the pump: Domestic gasoline inventories have fallen to 12-year lows, according to the latest figures from the Energy Information Administration (EIA). Despite strong production from U.S. refiners, supplies of gasoline decreased by 1.5 million barrels last week, reaching their lowest summer levels since August 2014, the EIA reported. Steady, but not spectacular, domestic demand and record gasoline exports have constrained supplies all summer. Last week, domestic demand settled at 8.8 million barrels a day — just shy of the benchmark of 9 million barrels a day that markets interpret as a signal of stronger demand. That mark has been exceeded just three times since mid-May. By comparison, demand surpassed 9 million barrels a day five times last year and six times in 2024 over the same period.
“For months, the status of the Strait of Hormuz has heavily influenced oil and gas markets and the latest developments in the war have shown again how quickly that influence can impact what drivers pay at the pump,” said Jillian Young, director of public relations for AAA Northeast. “Where prices head next will depend on a combination of gasoline inventories, demand and the war with Iran.”
AAA’s July 20 survey of fuel prices found the national average up 13 cents from the previous week ($3.87), averaging $4 per gallon. The July 20 national average price was 5 cents higher than the previous month ($3.95) and 86 cents higher than the previous year ($3.14).
As of July 20, Indiana and Mississippi had the lowest prices in the nation at $3.35 and $3.57, respectively. California and Hawaii had the highest prices in the nation at $5.49 and $5.41, respectively.
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $4.10 | $3.94 | $4.08 | $3.12 |
| Massachusetts | $4.03 | $3.90 | $4.07 | $3.05 |
| New Jersey | $4.06 | $3.93 | $3.99 | $3.05 |
| New York | $4.14 | $4.07 | $4.25 | $3.17 |
| Rhode Island | $4.04 | $3.85 | $3.93 | $3.03 |
Gas Prices by State Over Time
*Prices as of July 20, 2026
The AAA Gas Prices website is your resource for up-to-date fuel price information. Search for average gas prices on national, state and metro levels by regular, plus, premium and diesel.
Last updated on July 28, 2026 by AAA Staff
Based in Rhode Island, Jillian Young is AAA Northeast’s director of public relations. She regularly appears in local TV, radio and print media to discuss traffic safety, travel, insurance and more.
