Jun 2, 2026
One of the Iran war’s most direct impacts on US consumers has been in the rising cost of oil. Depending on what car you own, you could be spending hundreds to thousands of dollars extra per year just to get where you need to go.
Crude oil prices are both high and volatile as the markets respond to Trump’s — and Iran’s — confusing negotiation updates. They’re currently sitting a little under $100, down from $110+ highs.
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Gas prices at the pump are tied to crude oil prices, although they tend to trail a little. According to iSeeCars’ new fuel cost study, the price of gas rose by over 45% between the beginning of January and the end of April for 2026.
This has had an outsized impact on U.S. budgets — but not every car owner is feeling the same strain. Here’s who’s suffering the most under skyrocketing gas prices.
Large gas cars are the losers, electric vehicles are the winners
Before the Iran war, the average gas-powered vehicle owner was spending $1,533 per year on fuel. By the end of April, they’ve had to add $706 to their yearly gas budget — nearly half again what they were spending in January.
Larger, less fuel-efficient gas cars have taken the biggest hit when it comes to annual fuel costs.
According to iSeeCars, Minivans and trucks have both seen their yearly fuel requirements increase by around $1,000; Minivans have seen a $1,139 cost increase, while truck fuel budgets have increased by $992. Both categories of car owners were already paying, on average, over $2,000 per year.
Of the gas-only cars, passenger cars fared the best, with only a $606 increase. But they still fared significantly worse than conventional hybrids, which saw a $486 budget increase, and plug-in hybrids, which saw a $291 increase.
Fully electric cars had the most stable prices — they only saw an annual fuel cost increase of $11. Their starting fuel costs were significantly lower, too; Electric vehicle owners spent an average of $714 per year on fuel.
Electric vehicles already had cheaper fuel prices than gas ones; they also have more stable fuel prices than gas-only cars.
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“Gas price spikes seem to happen every few years,” said iSeeCars Executive Analyst Karl Brauer. “For consumers on a tight budget, a hybrid or plug-in hybrid can provide substantial relief from stressful swings in their monthly gas bill.”
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Does it make sense to switch to electric?
Now that peace talks with Iran have ended, it seems like there isn’t a quick path towards affordable oil. But does that mean it makes sense to switch to an electric vehicle?
While you can save money over time with an electric vehicle, you’re likely to have to pay more up-front than if you bought a gas vehicle. According to Kelley Blue Book, in 2025, the average new electric vehicle cost $57,245. In comparison, the average new car price as a whole was $49,077.
But there are more cost-effective EV options. Kelley Blue Book says that you could get a new electric vehicle for as low as $29,280 in 2025, although tariffs might have brought that price up some.
There used to be a federal tax credit available for electric vehicle purchasers. Unfortunately, that tax credit expired in late 2025. However, you could still be eligible for incentives toward owning an electric vehicle depending on what state you live in.
There are other cost trade-offs to consider with electric vehicles. Because most electric vehicles are newer, maintenance tends to cost less than with older gas cars; however, insurance is more expensive for EVs than for gas cars.
All in all, you’ll probably pay more up-front to own an electric vehicle. But the longer you own it, the more you’ll save; if you keep your EV for long enough, you could be in a better place financially than if you bought a gas car.
And if a fully electric vehicle just isn’t in your budget, hybrid cars are less expensive and still provide fuel savings over a gas-only car.
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Kit Pulliam is a DC-based financial journalist with over five years of experience writing, editing, and fact-checking financial content.
