The national average price for a gallon of regular gasoline climbed to $4.10 on August 21, marking the highest price ever recorded for this date and putting August 2026 on track to become the most expensive month for gas in U.S. history, according to AAA.
The price represents a 3-cent increase from the previous week and surpasses the previous August record of $3.97 set in 2022, according to AAA data cited by WRNJ Radio. The monthly average so far stands at $4.06 per gallon, already exceeding the 2022 benchmark.
Higher crude oil prices are driving the increase despite declining gasoline demand, which is typical for this time of year. West Texas Intermediate crude oil rose to $85.83 per barrel on August 21, remaining in the $80-per-barrel range amid continued instability in the Strait of Hormuz—a critical waterway through which roughly a fifth of global oil passes.
The ongoing conflict between the United States and Iran, which began in late February 2026, has kept energy prices elevated. The Strait of Hormuz was blocked during the conflict, disrupting global oil supplies. While Brent crude reached $112 a barrel in March—a level unseen since 2022—prices have since moderated but remain about 30% higher than a year ago, according to The Guardian.
Gas prices had dipped over the summer months after brief peace deals between the U.S. and Iran, but have climbed back upward as diplomatic talks have stalled. On August 17, the U.S. and Iran missed their 60-day diplomatic deadline to reach an agreement on Iran’s nuclear program, according to The Guardian.
The price surge has imposed significant costs on American households. Over the past six months of war, Americans have paid an excess of $56.4 billion in elevated gas prices—an average of $477 more per household—according to the Congressional Joint Economic Committee, as reported by The Guardian.
Regional variation is substantial. California had the nation’s highest average at $5.58 per gallon as of August 21, followed by Hawaii at $5.42 and Washington at $5.24, according to AAA. Indiana had the lowest at $3.56, followed by Texas at $3.64. Related energy costs are also rising: diesel fuel has hit a record August high at $5.47 per gallon amid the same geopolitical pressures.
Sources
- WRNJ Radio — National average gas price, AAA data, crude oil prices, state-by-state breakdown
- The Guardian — Gas price history, Iran conflict timeline, peace talks status, Congressional Joint Economic Committee household cost analysis
