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News of the day for March 11, 2026

Stock trading has been particularly volatile in recent days as oil prices have swung wildly.
Credit: Michael M. Santiago / Getty Images

Stock futures are holding steady Wednesday ahead of the release of a key inflation report; the International Energy Agency is discussing plans to release a major amount of oil from its reserves to mitigate the impact of the Iran war on the global energy supply chain; consumer price index data for February is expected to show inflation held steady, though experts warn that the war and volatile oil prices could spark inflation in the months ahead; Oracle shares are surging after the cloud services firm reported strong earnings and lifted its outlook; and Boeing said some first-quarter deliveries could be delayed. Here's what you need to know today.

Stocks Little Changed Ahead of Inflation Data

Stock futures are hovering near unchanged Wednesday morning as investors continue to assess the latest developments around the Iran war and await the release of closely followed inflation data (more on that below). Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq were each down 0.1% recently. On Tuesday, the Dow and S&P 500 each posted small declines while the Nasdaq finished fractionally higher, as the volatility brought on by the war continued and oil prices tumbled. Crude oil futures are back on the rise this morning—WTI futures, the U.S. benchmark, were up 3% at $86 per barrel recently—as investors continue to seek clarity on how the global supply will be affected by the war. Gold futures were down 1% recently at $5,190 an ounce, while bitcoin is trading around $69,500, down from highs of nearly $72,000 yesterday. The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of loans, was at 4.17% this morning, up from 4.14% at yesterday's close.

IEA Reportedly Considering Release of Oil Reserves

The International Energy Agency is poised to decide whether to release a record amount of oil from the group's strategic reserves today. The Wall Street Journal reported that the IEA circulated a proposal internally on Tuesday to potentially release up to 400 million barrels of oil from its reserves, more than double what it released to mitigate the impact of Russia's invasion of Ukraine in 2022. The 32 member nations are expected to decide on the plan today, per the Journal. The proposal comes after Group of Seven finance and energy officials met Tuesday to discuss possible releases from their own reserves to stem the impact of the war in Iran on the global oil supply chain. WTI futures have risen nearly 30% since the Iran war began in late February, pushing gasoline prices sharply higher.

February Inflation Data Due Out Wednesday

Investors will get their latest data point on the health of the U.S. economy with the release, scheduled for 8:30 a.m. ET, of the consumer price index report for February. The CPI is expected to show that prices rose by 2.4% in February compared to the same month last year, the same rate as in January. "Core" inflation, which excludes volatile food and energy prices, is expected to come in at 2.5%, also the same as January. However, the report may not carry the weight it typically does as it won't account for the surge in gas prices recently, which could affect overall inflation in the months to come. The report will still likely hold some influence with Federal Reserve officials, who are due to meet next week to set interest rates. The Fed is widely expected to hold its key rate steady next week, as inflation remains well above the central bank's 2% annual target.

Oracle Stock Jumps After Strong Earnings Report

Oracle (ORCL) shares are jumping this morning, a day after the cloud computing giant beat Wall Street estimates in its latest quarterly earnings report. Oracle also lifted its revenue outlook for fiscal 2027, and said its backlog is at a record $553 billion. The stock has been in a slump for the last several months as investors have grown concerned about that backlog's reliance on a few large customers, notably OpenAI, and about Oracle's debt load as it raises money to fund its data center buildout. Oracle shares, which through yesterday's close had shed a quarter of their value since the start of the year, were up 10% in recent premarket trading.

Boeing Says Deliveries Could Be Delayed

Boeing's (BA) production quality improvements hit a snag on Tuesday, as the plane maker said it found scratched wiring in some of its undelivered aircraft, per multiple reports. The company did not share a number of planes that were affected or specific fixes, but said it has identified the cause and said the issue could be fixed in a number of days for each plane impacted. While the issue could delay some first-quarter deliveries, Boeing said it is holding its delivery targets steady at around 500 737 MAX planes this year. Extra focus has been placed on Boeing's production quality in the last two years since a door plug detached from an Alaska Airlines plane in mid-flight in Jan. 2024, leading to months of investigations, production halts, and a CEO change. Boeing shares were little changed premarket after sliding 3% Tuesday.

Heading into Tuesday's results, Oracle stock was more than 50% off its September highs.
Credit: David Paul Morris / Bloomberg / Getty Images

Key Takeaways

• Oracle posted earnings that topped analysts' estimates as strong AI demand drove its sales and backlog to record highs. 
• The cloud computing giant also raised its revenue outlook for fiscal 2027.

Oracle turned in a strong quarter and raised its long-term outlook on strong AI demand. Will it be enough to bring its stock out of its slump?

Shares of Oracle were up about 9% in extended trading after the company said it had an "exceptional" quarter, in what could point to the start of a reversal in its recent decline.

Oracle posted adjusted earnings per share of $1.79 on a 22% year-over-year jump in revenue to a record $17.2 billion for the company's fiscal third quarter. Both figures topped analysts' estimates compiled by Visible Alpha.

Why This Is Significant

The sharp move higher could point to improving sentiment around Oracle's stock, which has taken a bigger hit than many other corners of the AI trade in recent months amid concerns about its debt load and exposure to OpenAI.

Meanwhile, the company's backlog more than quadrupled to a record $553 billion. Oracle said most of the growth "related to large scale AI contracts," and that it doesn't expect to have to raise any incremental funds to service those agreements.

Looking ahead, Oracle raised its revenue outlook for fiscal 2027 to $90 billion. It kept its 2026 guidance steady at $67 billion.

Citi analysts said they expect shares of Oracle to trade higher in the wake of what they called a "very solid" print. Wedbush analysts led by Dan Ives called the results a "huge relief" not just for Oracle, but the broader tech sector, "given the AI buildout jitters."

Heading into Tuesday's results, the stock was more than 50% off its September highs.

Last week, Apple announced the MacBook Neo as its most affordable laptop, starting at $599
Credit: Adam Gray / Bloomberg / Getty Images

Key Takeaways

• Apple recently announced a series of more affordable devices, including the iPhone 17e and MacBook Neo.
• The iPhone maker is seen leaning into more premium products next, according to a Bloomberg report.

Apple's latest product strategy isn't about cutting-edge technology. It's about being more—and less—affordable.

The iPhone maker last week announced a series of more affordable devices, including the MacBook Neo and iPhone 17e. ButApple (AAPL) is also working on a lineup of premium products that could come next, according to a weekend Bloomberg report. Apple did not respond to Investopedia's request for comment in time for publication.

Why This Is Significant

Apple's latest pricing moves could help the company respond to current trends. Economists and executives have said in recent months they're seeing “K-shaped” spending, with many consumers showing signs of strain, while higher-income earners drive spending on premium products and services.

While Apple announced updates to its MacBook Air and Pro lineups, as well as a new iPad Air, it's the budget-friendly MacBook Neo and iPhone 17e that have so far drawn the most attention from analysts and reviewers.

At about $600, some early reviews have suggested Apple's MacBook Neo could give many of its PC rivals a run for their money. At a time when a number of PC vendors are raising prices, analysts at Goldman Sachs recently wrote, the move could help win Apple new users who might otherwise have shopped brands like Dell (DELL), Lenovo and HP (HPQ).

The pricing of Apple's "value packed" iPhone 17e, also set to start around $600—like its predecessor, the 16e—is more competitive than anticipated, according to JPMorgan. Some analysts had expected Apple to raise the 17e's starting price, citing improvements to its storage and camera. Phones are the biggest part of Apple's hardware business.

The iPhone 17e and MacBook Neo, which are available for preorder, are set to hit stores Wednesday. Pre-orders of some MacBook colors and storage options are already reportedly sold out.

Many Apple users may be waiting on delayed artificial intelligence features, with a new AI-enabled line of glasses expected later this year. The Bloomberg report suggested a foldable phone could also be among the company's coming premium lineup.

Shares of Apple have lingered in negative territory for 2026 amid broader tech pressure. The stock is up about 18% over the past 12 months.

Oil and gas prices have soared since Iran brought Middle East oil shipments to a halt last week.
Credit: David L. Ryan / The Boston Globe via Getty Images

Key Takeaways

• The national average gas price has risen nearly 20% since the Iran war began, an increase that experts say threatens to aggravate inflation but won't keep Americans off the road.
• Oil prices were down sharply on Tuesday on hopes the war's disruptions to global oil supply will be short-lived.

Gas prices are up sharply since the start of the Iran war, but experts say they have a ways to go before Americans start canceling roadtrips and trading in their SUVs for EVs. 

The price of a gallon of gas at Casey’s General Store (CASY) has risen about 30 cents since the war in Iran began, putting the chain’s average fuel price “in the low $3 a gallon range,” said CEO Darren Rebelez in the company’s quarterly earnings call on Monday evening. “That’s still 30 cents below the starting point when the Ukraine war began,” Rebelez added. “So, we're actually sitting in a really low position.”

Oil and gas prices have soared since the U.S. and Israel began strikes against Iran late last month. Crude oil on Sunday jumped above $100 a barrel for the first time since Russia invaded Ukraine in 2022. Prices moderated Monday and were down 8% Tuesday afternoon as world leaders mulled ways to ease the oil supply crunch stemming from Iran’s closure of the Strait of Hormuz, a vital link in the global energy supply chain. 

Why This Is Important

Higher oil and gas prices can weigh on economic activity through a variety of channels—they weigh on discretionary spending by increasing transportation costs, and raise the price of everyday goods as those higher costs are passed on to consumers. Wells Fargo analysts warned on Tuesday oil prices persistently above $130 a barrel could tip the U.S. into a recession.

Gas prices, on the other hand, rose for a ninth straight day on Tuesday, putting the national average at about $3.54 a gallon, a 19% increase from pre-war levels. Though Tuesday's slump in oil prices should offer drivers some relief in the near term. Patrick De Haan, head of petroleum analysis at GasBuddy, said Tuesday declines “could act to greatly throttle back gas price increases.” He estimated the national average would “stall out soon” around $3.60.

That’s well below the price that usually leads consumers to make long-lasting changes to their driving and spending habits, according to Casey’s executives. “We really don't start to see any level of demand destruction until we're approaching $5 a gallon,” said Rebelez on Monday. The last time the national average was above $5 was June 2022, the same month that post-pandemic inflation peaked at a 40-year high. 

The U.S., as the world’s largest producer of both oil and natural gas, is far more resilient to energy price shocks than it once was. Higher oil prices are expected to put upward pressure on inflation, but some analysts predict those prices will create a counterbalancing boost to economic growth.

Still, there’s ample risk that oil and gas prices resume their march higher. Hopes for de-escalation were buoyed when President Donald Trump predicted Monday the war would end “very soon.” But experts point out that decision isn’t the president’s to make. “As a seasoned foreign policy hand emphasized to us last week, one state can start a war, but its conclusion typically requires the assent of multiple parties,” wrote analysts at Carlyle on Tuesday.

The Department of Education, led by Secretary Linda McMahon, will soon move SAVE borrowers into another repayment plan.
Credit: Aaron Schwartz/ Bloomberg via Getty Images

KEY TAKEAWAYS

KEY TAKEAWAYS:

• More than 7 million borrowers in the SAVE plan must transfer to a new repayment plan following legal challenges.
• The Department of Education recommends transferring to the Income-Based Repayment plan, as other options will phase out by 2028.
• Borrowers should expect higher monthly payments under alternative plans, which could increase default rates.

More than 7 million borrowers still enrolled in the Saving for a Valuable Education repayment plan will need to transfer soon, the Department of Education said.

The Education Department said in a statement to Investopedia that the latest development in the legal saga will lead to the end of the "unlawful SAVE Plan."

"In the coming weeks, the Department will issue clear guidance on next steps for borrowers enrolled in the illegal SAVE Plan, including details regarding how borrowers can move into a legal repayment plan," said Under Secretary Nicholas Kent in a statement. "The Trump Administration will continue to realign the federal student loan portfolio to better serve students and taxpayers.”

At the end of February, borrowers expected the SAVE plan to be revived after a district judge dismissed the lawsuit that had kept the repayment plan in limbo for almost two years. On Monday afternoon, however, a higher court of appeals resumed the case and sent it back to the district judge.

The district judge now has to decide whether to approve the Department of Education's December agreement to immediately end the SAVE plan.

Why This Matters

The Department of Education is already facing delays due to the constant changes in student loan policy over the past few years. Borrower advocates say that if the SAVE plan ends, these delays will increase further.

The SAVE plan, created under the Biden administration, offered income-driven payments lower than those under most repayment plans and made it easier to achieve forgiveness. The plan was first embroiled in lawsuits in April 2024, when a group of states sued, arguing the president didn't have the power to implement them.

While then-President Joe Biden and his Department of Education fought for the SAVE plan, its borrowers were placed in administrative forbearance. This more than year-and-a-half payment pause is still active today.

What Should I Do Next?

While the Department of Education says Monday's decision means the end of SAVE, borrowers still have to wait for the district judge's final judgment.

In the meantime, borrowers can take action to resume their payments or progress toward loan forgiveness.

There are three income-driven repayment plans currently available to borrowers: the Income-Contingent Repayment, the Pay As You Earn and the Income-Based Repayment plan.

The Department of Education has recommended that SAVE borrowers transfer to the IBR plan, as the other two income-driven repayment plans will be eliminated by July 2028. Additionally, a newly created option, the Repayment Assistance Plan, is expected to be available in July 2026.

No matter the repayment plan, most borrowers should expect higher monthly payments than they would have under the SAVE plan, if it had resumed. Already, more than 10.5 million borrowers are either delinquent or have defaulted on their federal student loans. Borrower advocates say the end of SAVE could make the default rate even worse.

Tariffs have broadly caused employers to pull back on jobs. This industry has been one of the few exceptions.
Credit: Kena Betancur / Bloomberg via Getty Images

Key Takeaways

• Tariffs have increased demand for international trade and compliance specialists, creating new job opportunities.
• Job postings with "tariff" or "international trade" keywords rose 25% on Indeed.com over the past year.
• Particularly, legal and compliance firms are hiring to manage tariff-related lawsuits and regulatory complexities.

A Japanese machinery manufacturer in North Carolina is hiring a specialist to help the company comply with import tax regulations.

Another company in Elkhart, Indiana, needs a director of logistics and trade compliance for "managing trade and tariff strategy" among other duties.

And a trade law firm in Miami brought on a lawyer just to handle the extra work created by the import taxes President Donald Trump imposed last year.

Trump's tariffs haven't yet revived manufacturing jobs as intended, but they have boosted employment for tariff and international trade experts who help companies comply with them.

Listings on job site Indeed.com that include the keywords "tariff" or "international trade" have risen significantly over the last year. As of February, 532 jobs out of every 1 million job postings contained those phrases, up 25% from 424 at the same time last year, a spokesperson for the site said in an email. (Indeed does not release exact numbers of posts but says it has more than 16 million job posts on its site.)

The uptick in jobs directly related to tariffs is an unintended employment effect from a policy that many economists say has dragged down job creation.

Since "Liberation Day" last April, when Trump announced sweeping import taxes on most U.S. trading partners, the economy has lost 19,000 jobs, according to the Bureau of Labor Statistics. It's lost 89,000 manufacturing jobs, which the tariffs were meant to revive by tipping the scales in favor of building factories in the U.S.

"Jobs and factories will come roaring back into our country," Trump said in April.

Supporters of the tariffs say manufacturing investments will likely take longer to materialize and are yet to come.

What This Means For The Economy

The number of tariff-related job listings is insignificant for the overall economy, but it is beneficial for thousands of people in the highly specialized field.

Tariffs have stymied job creation in several ways. First, experts say, they've stoked uncertainty about trade policy, discouraging businesses from hiring and expanding. Secondly, many firms have absorbed tariff costs rather than passing them on to customers, reducing the funds available to pay new employees.

"To cut costs elsewhere, their hirings ground to a halt," Michael Gregory, deputy chief economist at BMO Capital Markets, wrote in a commentary Tuesday.

The uncertainty and confusion surrounding the tariffs, however, have created work in their own right. For example, last month, when the Supreme Court ruled that many of Trump's tariffs were illegal, 2,000 companies reportedly filed lawsuits in federal court seeking refunds. The avalanche of lawsuits has benefited law firms specializing in international trade, such as Jennifer Diaz's practice in Miami.

"The tariff uncertainty has created more questions and concerns for our international clientele in the import/export space," she said in an email to Investopedia. "We just hired another attorney to assist with the current trade environment and don’t see it slowing down anytime soon."

Strategy's Michael Saylor is a proponent of the company's preferred issues.
Credit: Ronda Churchill / Bloomberg via Getty Images

Key Takeaways

• Strategy's new financial wares are something between a stock and a bond.
• The bitcoin buyer's preferred issues pay dividends and resemble both stocks and bonds in different ways—and they're attracting both retail and pro investors.

If you can't get enough volatility, buy bitcoin. If you've had enough... buy bitcoin.

That's one way to read the good word from Michael Saylor, chair of Strategy (MSTR), whose latest financial wares, called preferred issues—hybrid securities that have both stock- and bond-like features—may appeal to both Wall Street and Main Street investors wary of whipsawing stock markets.

They look like bonds because they pay a regular yield, or dividend. They resemble equities because holders rank below creditors in a company's capital stack. Four of them now trade on the Nasdaq, nicknamed "Stretch," "Stride," "Strife," and "Strike" after their respective tickers. Stretch, which uses the symbol "STRC," is the most ballyhooed of them all.

WHY THIS MATTERS TO YOU

Investors appear to be actively seeking income-generating assets lately. They might look for it in Strategy if they don't mind the underlying crypto risk.

Why is that? Perhaps because its current yield is 11.5%—while Strategy's common stock has been cut in half in the last year as crypto markets took a turn for the worse. (Stretch, Strategy's Michael Saylor said on social media Tuesday, "is for everyone.") Fans liken "Stretch" to a stablecoin, but investors should note some meaningful differences.

Like stablecoins, which aim to stay pegged to a fiat currency such as the U.S. dollar, Stretch is designed to trade at $100. Strategy does this by adjusting the rate it will pay on it up or down on a monthly basis; its current yield is higher than some "investment-grade" preferred issues that pay 6% to 7%.

Unlike stablecoins, Stretch is not as good as cash. Unlike Circle's (CRCL) dollar-pegged USDC, it's not backed by short-term Treasurys, which carry a guarantee from the U.S. government. Instead, it's backed by Strategy itself, which includes a software business, a pile of bitcoin —738,731 coins recently valued at around $53 billion —and a cash reserve of over $2 billion the company said is intended to cover its debt and the preferred issues' dividend but can be used for other things at Strategy's discretion.

While Strategy's common shares have at times been catnip for retail investors, the preferred issues, including Stretch, have been picked up by big institutional holders— including funds from Fidelity, Vanguard, Capital Group and BlackRock's iShares— that aim to provide income, according to data compiled by Yahoo Finance.

The sale of the preferred issues raised $2.5 billion for Strategy in July and have raised hundreds of millions more this year via ongoing sales, allowing the company to keep buying bitcoin— but there's risk. Strategy can change Stretch's payout rate at its "sole and absolute discretion," per the prospectus. It can issue other preferred stock that rank equally with STRC in the company's ownership structure, which might be worrisome to those concerned about its ability to keep paying high yields. (Saylor told Investopedia in December that the company is building a "capital markets platform.")

And there's the possibility that even if Strategy raises the yield, it cannot keep the preferred at $100, and, per regulatory filings, "may abandon" the effort. If investors' expectations about the yield aren't met, they could react poorly. Per the company's prospectus: "If we increase, or announce an intention to increase, the monthly regular dividend rate per annum, then the trading price of the STRC Stock may in fact decrease if the market expected us to make a larger increase."

S&P Global in December affirmed Strategy's credit rating of "B-" with a "stable outlook," which means the firm expects Strategy will continue to manage its debt, continue paying preferred dividends, and maintain access to capital.

Strategy is incentivized to tread deliberately given how many institutional investors have bought in. And if bitcoin prices go higher, as they have lately, that could strengthen Strategy's position as a stockpiler of the cryptocurrency—a good thing, though, preferred yields generally have an inverse relationship to risk.

A sustained rise in oil prices could dampen the economy.
Credit: S

Key Takeaways

• The U.S. economy could fall into a recession if the price of oil reaches $130 a barrel and stays there, economists at Wells Fargo Securities said Tuesday.
• The price of oil has whipsawed up and down in recent days as the Iran war has restricted tanker traffic through the crucial Strait of Hormuz.
• High oil prices would push up gasoline and diesel prices, tanking consumer confidence and reducing spending, leading to job losses, the economists said.

If you're watching the price of oil on its recent roller coaster ride, there's a key number to keep in mind: $130 a barrel, the level at which oil is expensive enough to push the U.S. economy into a recession.

That's according to economists at Wells Fargo Securities, who found that if crude oil reached that price level and stayed there, it would push gas prices up high enough to force households to cut back on spending and businesses to start laying people off.

"An oil price shock becomes recessionary when it turns a slowing expansion into a self-reinforcing downshift: real income falls, consumption growth slows, investment contracts, hiring weakens, and income declines further," economists led by chief economist Tom Porcelli wrote in a commentary Monday.

The price of oil has whipsawed up and down since Feb. 28, when the U.S. and Israel began bombing Iran, prompting the virtual closure of the Strait of Hormuz, the vital waterway through which 20% of the world's oil supply flows.

The price of a barrel of Brent Crude, an international benchmark for oil prices, briefly shot up to $117 on Monday, a 67% increase from its prewar price. Gasoline prices followed suit, surging to a national average of $3.56 for a regular gallon on Tuesday, up from $2.98 before the war, according to data from Gasbuddy.

"Although the Strait of Hormuz is not physically blocked, the threat of attack by Iran and the cancellation of insurance coverage have led most tankers to avoid transiting the Strait," the Energy Information Administration said Tuesday. "As a result, some oil production in the region has been shut in. If this reduction in vessel volume persists, oil storage behind the chokepoint will quickly fill, causing oil producers to shut in even more production, lending further support to oil prices."

What This Means For The Economy

The recession threshold is a key benchmark to keep in mind when monitoring the price of oil and assessing its impact on the economy.

Fortunately for the outlook for the U.S. economy, since then, prices have fallen to roughly $85 Tuesday afternoon after President Donald Trump sent mixed messages about how soon the war would end, raising hopes in financial markets that the strait would reopen soon and gas prices would cool down in the coming days.

Still, the energy crunch is hitting the U.S. economy at a time when inflation has run stubbornly high and the job market was already starting to look vulnerable, with employers shedding 92,000 jobs in February.

A sustained oil price surge would be dangerous not only because it would sap household spending, but also because of its psychological impact on consumers, Wells Fargo economists said.

"Higher inflation expectations, weaker sentiment, and tighter financial conditions that make investment harder and ding household consumption, particularly for the higher income cohorts currently driving spending growth," they wrote. "Market concerns about growth have the potential to become self-fulfilling by choking off the confidence/wealth channel and turn what has already felt like a recessionary environment for many Americans into an actual recession."

Forecasters currently expect oil and gas prices to subside in the coming months, but that assumes the war ends soon and the strait reopens. Brent Crude will stay over $95 for two months before falling to its prewar price by the end of the year, the EIA forecast. Gas will average $3.58 a gallon in March before falling back to around $3 by the end of the year, the EIA said.

Amid the Iran conflict, gas prices across the country range from $3.01 to more than $5 per gallon.
Credit: Investopedia / Sabrina Karl

Key Takeaways

• The national average gas price rose another 4 cents to $3.58 Wednesday, as oil prices resumed their climb amid the Iran conflict.
• Pump prices have jumped 60 cents per gallon since the end of February.
• Every state now has an average above $3 per gallon, and six states are above $4, with Arizona joining that list today.

Gas Prices Have Jumped 60 Cents in 11 Days

Oil prices resumed their climb Wednesday after a one-day pullback, extending a rally that began with the escalating Iran conflict. That renewed strength in crude is continuing to filter through to drivers.

The national average for regular gas rose 4 cents overnight to $3.58 per gallon, according to AAA, bringing the increase this month to 60 cents. The average had held below $3 for 13 straight weeks before this recent run-up—the first stretch in $2 territory since 2021.

Gasoline prices don’t move in real time with crude oil, meaning rapid increases in energy markets can continue filtering through to drivers for days or weeks.

Why This Matters

Gas prices don’t fall as quickly as oil, so relief at the pump may take time even if crude prices drop. Still, what you’ll pay depends heavily on your state—and the gap can be more than $2 per gallon.

Gas Prices Are Now Above $3 in Every State, With 6 States Over $4

Gas prices vary sharply depending on where you live. While the average has surged everywhere, state-level prices span a wide range across the country.

Drivers in Kansas are still seeing the cheapest price at the pump, according to AAA, with the next cheapest states being Oklahoma, North Dakota, Missouri, and Arkansas. As of March 11, every state’s average price per gallon is above $3 per gallon.

At the high end, six states now average more than $4 per gallon: California, Washington, Hawaii, Nevada, and Oregon, with Arizona joining the list today. California remains the most expensive market in the nation, with drivers paying an average of $5.34 per gallon.

The result is a spread of $2.33 per gallon between the cheapest and most expensive states.

The Last Time Gas Hit $5

The national average briefly topped $5 per gallon in June 2022. Amid this week’s surge, California’s average is now above that mark—though most states still have averages in the $3 range.

Why Gas Prices Vary So Widely by State

The wide differences in state gas prices aren’t random. They reflect structural factors that shape how fuel is taxed, produced, and delivered across the country.

Fuel taxes are one of the biggest drivers of variation. According to the U.S. Energy Information Administration, federal and state taxes accounted for more than 14% of the average price per gallon in 2023. Because some states levy significantly higher gasoline taxes and fees than others, those differences show up directly at the pump.

Geography and infrastructure also matter. States that are closer to major refineries or pipeline networks often benefit from lower transportation costs, while more isolated markets can face supply constraints that push prices higher.

In some cases, environmental rules play a role. California, for example, requires a cleaner-burning gasoline blend that relatively few refineries produce, contributing to its persistently higher prices.

When oil prices rise sharply, those built-in cost differences can amplify the impact in already expensive states. And even when crude pulls back, those underlying factors don’t disappear—helping explain why the gap between states can remain wide.

Fast-moving news and conflicting signals complicate short-term market moves these days.
Credit: Andrew Harnik / Getty Images

Key Takeaways

• Spot gold prices climbed, crude oil prices sank, and U.S. stocks rose on Tuesday.
• The whipsaw action has posed challenges for investors. Market strategists advise moving slowly and avoiding extremes.

Investors may be having a hard time working out what's next in the Middle East. Some advisers suggest they shouldn't try.

Major asset classes are whipsawed as investors tried to determine how long the war in the Middle East will last. The messaging, analysis and market signals seem to conflict from hour to hour, making how to proceed it all the more difficult to determine.

The price of West Texas crude, for example, both surged to above $115 per barrel and dumped to around $85 yesterday. (Read Investopedia's full daily markets coverage here.) The price of gold did precious little following the outbreak of war, only to start climbing after President Donald Trump teased an end to hostilities. U.S. stocks are seemingly up one day, down another. The Wall Street "fear gauge" known as the VIX is jumping between fear and relative calm.

As markets move fast and break trends, strategists and experts advise investors to go slow and avoid extreme positions.

WHY THIS MATTERS TO YOU

Market strategists are advising investors to reevaluate their portfolios for risk and to avoid extreme positions in stocks one way or another. That may be a wise perspective if you'd prefer not to attempt to predict the effects of day-to-day headlines on various assets.

Though Trump in an interview yesterday with CBS News said the U.S.'s war with Iran is "very complete, pretty much," he also threatened to escalate in a social media post later in the evening. "If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far," he said in a social media post. Defense Secretary Pete Hegseth this morning indicated that the fighting will not end "until the enemy is totally and decisively defeated."

The fluidity of the situation calls for a plan, according to UBS, which in a recent note said investors should plan around the question "if the conflict persists for six months and oil remains elevated, what would I want my portfolio to look like?"—and then space out changes between what their investments look like today and their goal.

"We do not believe equity investors should 'run for the hills' nor should they be reflexively 'buying the dip,'" UBS wrote.

The end of a war would depend not just on the leadership of U.S. and Israel but also Iran. Though risk assets rebounded following Trump's initial missive indicating the pending end of war, "the outcome depends on Iran’s response, leadership cohesion, and willingness to return to negotiations," BCA Research's Felix Vezina-Poirier wrote Tuesday.

The state of leadership in Iran makes the future uncertain, Jared Cohen, Goldman Sachs' president of global affairs and the firm's Iran expert said in an interview with CNBC. Cohen said his contacts in Iran said there's an assumption that the now-deceased leadership in Iran "set in place a decentralized war machine that is effectively running on autopilot."

"There's no leader in Iran that has the authority, the information, and the access to that decentralized machine to guarantee cessation of activities," he wrote. "So it's not clear to me what the off-ramp looks like."

That lack of clarity, some analysts believe, is a sign that investors should tread cautiously.

"Our key message for investors dealing with these unnerving headlines and market volatility is simple," LPL Financial wrote Monday. "Be patient. Stay diversified. Maintain balanced portfolios that include some investments well-positioned for volatility. Look for opportunities on the other side. Those who ride out the ups and downs, in time, will be grateful they did."