Local gas prices are on the rise in response to the escalating conflict in the Middle East.

The average gas price in Massachusetts on Monday was up 9 cents from last week ($2.99), averaging $3.08 per gallon, according to AAA Northeast.

Since the start of June, oil prices have risen more than $10 a barrel and are now hovering around between $74 and $78 a barrel — a price level last seen in January. Those prices held until the markets closed on Monday, a day that saw oil shed 7.2% to close at $68.51.

The volatility stems in large part from the fighting that broke out between Israel and Iran beginning on June 13 — and then intensified over the weekend with the U.S. launching a series of airstrikes on Iranian nuclear facilities. Iran is now threatening to block oil shipments in the region.

President Donald Trump on Monday commented about the rising gas prices.

“EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!” Trump posted.

“To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!” the president added.

Pump prices were also rising due to steady demand for gas, as the summer driving season shifts into higher gear.

“It should come as no surprise to see prices at the pump spike after an escalating geopolitical conflict in the Middle East, but it’s not the only factor driving recent price increases,” said Mark Schieldrop, of AAA Northeast. “Prices were already poised to climb on stronger summer demand and seasonal expectations.”

The average price in Massachusetts of $3.08 per gallon is 7 cents higher than a month ago ($3.01). Meanwhile, the price is 35 cents lower than this day last year ($3.43).

Massachusetts’ average gas price is 14 cents lower than the national average. The Bay State holds 22nd place on the list of lowest gas prices in the nation.

AAA Northeast’s June 23 survey of fuel prices found the current national average up 8 cents from last week ($3.14), averaging $3.22 per gallon.

The national average price is 3 cents higher than a month ago ($3.19), and 22 cents lower than this day last year ($3.44).

Mississippi and Oklahoma have the lowest prices in the nation at $2.73 and $2.82, respectively.

California and Hawaii have the highest prices in the nation this week at $4.66 and $4.47, respectively.

Inventories of both oil and gasoline fell last week, according to the Energy Information Administration — with oil stocks falling by a sizable 12 million barrels to 420.9 million barrels, as refiners produced more gas and diesel and more oil was exported.

In the Northeast, gas supplies shrank by 700,000 barrels to 58.7 million barrels, which is still above 56.1 million barrels in storage last year, but below the 62-million-barrel five-year average.

The EIA last week reported demand for gasoline reached 9.29 million barrels a day — a figure in line with expectations for this time of year, and an increase over the prior week’s 9.17 million barrel a day reading.

After lackluster demand readings all through the spring, markets are reacting to the stronger numbers in recent weeks with optimism, sending wholesale gasoline prices higher.

Monday’s trading saw oil lurch at the market’s open to over $78 a barrel before closing at $68.51. The easing price came on hopes that Iran would not disrupt the global flow of crude, something that would hurt economies worldwide but also its own, following a round of U.S. strikes against Iranian nuclear sites.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 23, 2025.

Stocks rose and crude prices tumbled Monday as investors breathed a sigh of relief that Iran’s response to the U.S. attacks over the weekend was more restrained than expected.

The Dow Jones Industrial Average added 374.96 points, or 0.89%, ending at 42,581.78. The S&P 500 gained 0.96% and closed at 6,025.17, while the Nasdaq Composite climbed 0.94% and settled at 19,630.97.

Iran’s armed forces said Monday they attacked an American base in Qatar after the U.S. hit Iranian nuclear sites in Fordo, Isfahan and Natanz over the weekend. The response, however, was intercepted by Qatar and no casualties were reported.

This led to a sell-off in oil as traders bet crude supply wouldn’t be materially disrupted by the ongoing conflict.

West Texas Intermediate futures dropped more than 7% to settle at $68.51 per barrel. Overnight, they hit their highest levels since January above $78.

Adding pressure to oil were comments by President Donald Trump. In a Truth Social post, he said that “everyone” should keep oil prices low, and doing otherwise would “play into the hands of the enemy.”

The US president has ordered the Department of Energy (DOE) to boost oil drilling the US to keep crude …

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President Donald Trump demanded that “everyone” keep oil prices down after the U.S. bombed Iran’s key nuclear sites over the weekend.

It wasn’t clear who exactly Trump was addressing, though he was likely calling on the U.S. oil industry to boost production.

The conflict with Iran has raised fears that the Islamic Republic could disrupt Middle East oil supplies and spike global oil prices.

President Donald Trump on Monday demanded that “everyone” keep oil prices down or they would play “into the hands of the enemy,” as the conflict in the Middle East escalates following U.S. strikes on Iran.

“EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!,” the president said in a post on his social media platform Truth Social.

Trump’s message comes after the U.S. bombed Iran’s key nuclear sites over the weekend, putting the world on edge that the Islamic Republic might target energy supplies in the Middle East and cause a spike in global oil prices.

It wasn’t clear who specifically Trump was speaking to in his post, though he seemed to be addressing the U.S. oil industry. Some oil companies had warned earlier in the year that they might have to cut production after prices tumbled to multiyear lows on Trump’s tariffs and OPEC+ boosting supply.

“To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!,” Trump said in a subsequent post on Monday. Oil production decisions in the U.S. are made by private companies in response to market dynamics. The Energy Department does not drill for oil.

“As the President said, producers must keep oil prices down or risk playing into the hands of the enemy,” White House spokesperson Harrison Fields said when asked who Trump was addressing.

Crude oil prices closed about 7% lower on Monday after Iran fired missiles at a U.S. airbase in Qatar but did not cause any casualties. Investors hoped that Iran had calibrated its retaliation to avoid further escalation.

The US special envoy to the Middle East, Steve Witkoff, delivers remarks at the White House on May 28. Andrew Harnik/Getty Images/File

President Donald Trump’s Middle East envoy, Steve Witkoff, has remained in contact with Iranian officials since US strikes on Iranian nuclear facilities over the weekend, two sources familiar the matter said, as the administration continues to seek out a diplomatic resolution to the conflict.

But his efforts are facing significant challenge from Iranian Supreme Leader Ayatollah Ali Khamenei, who has been exceedingly difficult for Iranian officials to reach after he retreated to a hidden location amid escalating tensions, the sources said.

The understanding among US officials is that the 86-year-old Khamenei will need to sign off on any major diplomatic decisions. But getting information to and from him has become more difficult.

That has left communications between the US and the Iranians — either directly or through intermediaries — somewhat halting, officials said.

Khamenei has not delivered any recorded messages since the US strikes. And US officials believe he is in hiding amid the ongoing conflict to avoid assassination.

Nonetheless, Trump said he hopes that after the weekend strikes, Iran will return to negotiations that had been largely deadlocked before Israel began its attacks this month.

The US and Iran have maintained back-channel communications throughout the current crisis. Before the weekend strikes, the US conveyed a message that the actions would be contained and that Trump was still seeking to resolve the matter diplomatically, officials said.