Gas prices in the United States jumped slightly Tuesday and the stock market took a hit with the Dow Jones Industrial Average dropping more than 1,000 points as the conflict in the Middle East continues.
Reports indicate investors are concerned about the sudden surge in oil prices after the United States and Israel attacked Iran over the weekend, sparking a broader conflict across the region.
In his first public remarks since the conflict erupted, President Donald Trump made the case that the U.S. strikes needed to happen to prevent Iran from developing its nuclear weapon capabilities.
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Many of the country’s top leaders, including Supreme Leader Ayatollah Ali Khamenei, were killed in the initial strikes, moving Iranian leadership into uncharted territory after the long-standing regime was taken out. At least six U.S. service members have been killed in Iran’s counterstrikes.
The conflict is starting to have an economic impact on the United States, with the American Automobile Association saying the average price for a gallon of gasoline rose 11 cents overnight. Utah’s average price at $2.89 per gallon is less than AAA’s national average of $3.10.
AAA did say gasoline prices were already on the rise due to the summer fuel blend transition which generally boosts the price at the gas pump.
Markets across stocks, bonds and crypto all took a major hit as oil prices continued to rise due to the conflict. The Dow dropped more than 1,000 points, which is on par with the biggest one-day decline since April 2025 which was after Trump’s “Liberation Day” tariff announcement, The Wall Street Journal reported.
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The Strait of Hormuz is a shipping lane that provides passage for about 20% of the world oil supply and is controlled by Iran. It’s estimated that there are more than 3,000 ships stuck in the Persian Gulf waiting to cross the strait. In 2025, about 20 million barrels of oil passed through the strait each day, the U.S. Energy Information Administration estimated.
Iran vowed to attack any ship by setting it on fire if it tries to pass through the Strait of Hormuz, the country’s most explicit threat about clamping down on the world’s oil supply amid the conflict.
Trump administration officials in the U.S. say that the war could last for weeks or even longer. Secretary of State Marco Rubio told reporters that the “hardest hits are yet to come” and the “next phase will be even more punishing on Iran than it is right now.”