WASHINGTON / DUBAI, March 31, 2026. U.S. gasoline prices climbed above $4 a gallon for the first time since 2022 after Iran attacked and set fire to a fully loaded Kuwaiti oil tanker off the coast of Dubai, intensifying the energy crisis triggered by the war in the Middle East.

The tanker, Al-Salmi, was carrying nearly two million barrels of oil — including 1.2 million barrels of Saudi crude and 800,000 barrels of Kuwaiti crude — on its way to Qingdao, China. Dubai authorities said the fire was contained after a drone strike, with no injuries or oil spill reported, although the vessel’s hull was damaged.

The incident has heightened fears over the security of the Strait of Hormuz, through which roughly one-fifth of the world’s oil and liquefied natural gas supply normally passes. Concerns that Iran could further restrict shipping through the waterway pushed global energy prices sharply higher.

Brent crude, the international oil benchmark, rose again to nearly $115 a barrel after gaining about 2% during Tuesday’s trading session. In the United States, the national average gasoline price reached $4.02 per gallon, the highest level since Russia’s invasion of Ukraine in 2022.

The increase also means that fuel prices are now higher than at any point during President Donald Trump’s two terms in office. States such as California and Washington are already seeing average prices well above $5 per gallon.

The conflict continued to expand across the region. Iranian state media reported that a desalination plant on Qeshm Island was taken out of service after an airstrike, while several Iranian cities were hit by fresh attacks.

Meanwhile, U.S. Central Command confirmed that the USS Tripoli, believed to be carrying Marines, is operating in the Indian Ocean as speculation grows over a possible U.S. ground operation in Iran.

Energy analysts warn that if attacks on tankers and Gulf oil infrastructure continue, crude prices could rise even further, driving gasoline prices in the United States to new highs in the coming weeks.

China, Iran’s largest oil customer, renewed its call for an immediate halt to military operations, while Pakistan is attempting to mediate between the parties to prevent a total disruption of traffic through the Strait of Hormuz.