Iran war: US gasoline prices surge as conflict escalates

The national average price of gasoline in the US has hit $4 a gallon for the first time since 2022, according to GasBuddy.

Plus, Iran reportedly passed a plan to charge a fee for ships crossing the Strait of Hormuz.

Here are the main developments in the US-Israeli war on Iran on Tuesday, March 31:
Trump willing to end war without opening Strait of Hormuz, says report
President Donald Trump told aides he is willing to end the military campaign against Iran even if the Strait of Hormuz remains largely closed and leave a complex operation to reopen it for a later date, the Wall Street Journal reported on Monday, citing administration officials.

The WSJ said in its report that Trump and his aides had come to the conclusion that a mission to reopen the critical waterway — now a chokepoint — would extend the conflict beyond his timeline of four to six weeks.

Instead, the US president has decided to focus on hitting Iran's missiles and navy before putting pressure on Tehran diplomatically to reopen the Strait of Hormuz, the report said.

The WSJ report comes as world governments find themselves in a melee, implementing measures to allay the burden of soaring fuel prices while also looking at conserving energy.

Nearly one-fifth of global crude and gas passes through the strait.

Oil prices slipped and most stocks went up on Tuesday following the Journal's report.

Both main global oil contracts — West Texas Intermediate and Brent — fell but were still well above $100 a barrel.

On Monday, Trump also threatened to destroy Kharg Island, Iran's key oil export hub, if a peace deal is not reached.

He said US troops would destroy "all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)."
Experts have said that destroying civilian infrastructure could constitute a war crime.

Mixed messages from Donald Trump over his plans for Iran
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Israel says 4 of its troops killed in southern Lebanon
The Israeli military said on Tuesday that four of its soldiers were killed and two others were injured during combat in southern Lebanon , where Israel's forces are fighting Iran-backed Hezbollah militia group.

A military statement named three soldiers from the same battalion, all in their 20s, who "fell during combat."
In a separate statement, the Israeli military said that another soldier had died in the same incident whose name had not yet been cleared for publication.

The military did not immediately provide further details of the incident.

Israel's forces are continuing their invasion in southern Lebanon with ground troops, continuing operations against Hezbollah's infrastructure.

Lebanese Defense Minister Michel Menassa said on Friday that Israeli troops have penetrated 8 kilometers inland from the border.

In November 2024, Israel and Hezbollah agreed on a ceasefire after clashing for nearly a year.

But the militant group resumed attacks on Israel about a month ago following the start of the Iran war.

Israel has since responded with heavy airstrikes and ground operations in southern Lebanon.

WATCH: Could the war in Iran benefit Ukraine?

Dubai authorities put out fire on Kuwaiti oil tanker
The Dubai Media Office said in an update that the blaze on a Kuwaiti tanker anchored off Dubai (see entry below) had been successfully extinguished.

Kuwaiti oil tanker anchored in Dubai attacked
A Kuwaiti oil tanker anchored in the Dubai port was hit by what appears to have been Iranian strikes, Kuwait's state news agency KUNA reported.

The oil tanker was fully loaded at the time of the incident, KUNA reported citing Kuwait Petroleum Corporation.

The company warned of a possible oil spill in surrounding waters.

The Dubai Media Office later said firefighting teams were responding to the incident and that the safety of all 24 crew members was secured.

There were no casualties reported.

Gas prices in US hit $4 a gallon, highest since 2022
The US national average for a gallon of gasoline jumped to $4 on Monday, according to an app called GasBuddy that tracks fuel prices.

Oil prices also rose after the Kuwait Petroleum Corporation said a fully loaded tanker was attacked in what it called Iranian strikes.

The West Texas Intermediate crude futures, the US benchmark, jumped 3.4% to $106.40 a barrel by 19:54 ET (2354 GMT) late Monday.

The $4 per gallon milestone was ‌last reached in ⁠August ⁠2022 following Russia's invasion of Ukraine.

Prices for many goods are climbing, including oil used to make gasoline, following Iran's near-blockade of the Strait of Hormuz .

Why Iran fuel crisis hits different in Europe than the US
Here's a recap of some of the major events over the course of March 30:
President Donald Trump sent mixed messages about the Iran war, saying the United States was winning the war, even as thousands of US service members were en route to the region.

Trump also claimed progress in talks with Iran, even as Iran's Foreign Ministry spokesman said no such direct talks had taken place.

Trump threatened attacks on Iran's energy infrastructure as well if Tehran didn't reopen the Strait of Hormuz.

The Iranian-backed Houthi militant group, which controls much of Yemen, joined the war over the weekend with a missile attack targeting southern Israel.

There is fear that the group might once again strike vessels in the Red Sea , which could exacerbate a crisis in global energy supply.