U.S. Gas Prices Near Four-Year Highs Ahead of Memorial Day
CNBC reported Friday that American drivers are facing gas prices near four-year highs heading into Memorial Day weekend, with analysts warning that worse pain at the pump lies ahead if the Strait of Hormuz remains closed to oil traffic.
The national average reached $4.55 per gallon on Friday. That marks a rise of more than 50% since the U.S. and Israel launched military operations against Iran on February 28. It is the highest gas prices have been on the Friday before Memorial Day since 2022, when Russia’s full-scale invasion of Ukraine rattled energy markets.
Why Pump Prices Keep Climbing
Iran’s blockade of the Strait of Hormuz is driving the surge. The strait is the world’s most critical oil export route, linking major Persian Gulf producers to buyers in Asia, Europe, and beyond. Its closure has produced the largest supply disruption in the history of the oil market, sending U.S. crude prices more than 40% above pre-war levels.
GasBuddy head of petroleum analysis Patrick De Haan told CNBC that pump prices could breach $5 per gallon in June if Hormuz stays shut. He added that prices are unlikely to fully normalize before well into 2027, even if the strait reopens soon. De Haan cautioned that markets need verifiable, concrete steps toward reopening before the $5 threshold can be ruled out.
How the War With Iran Changed Everything
Before the February 28 offensive, U.S. fuel costs had stabilised following post-pandemic volatility. The conflict immediately broke that calm. President Donald Trump said this week he called off planned strikes on Iran to allow more time for diplomacy, sending oil prices down nearly 7%. But previous signals of progress have repeatedly given way to fresh escalation, keeping markets on edge.
Trump told reporters Tuesday that he is not factoring American household finances into his decision-making, stating his singular focus is preventing Iran from acquiring nuclear weapons.
A Four-to-Six-Week Warning Window
David Goldwyn, who served as the State Department’s special envoy for international energy affairs under the Obama administration, told CNBC that global oil inventories are being drawn down rapidly. He estimates only four to six weeks remain before shortfalls begin pushing gasoline, diesel, and jet fuel prices sharply higher.
The U.S. is shielded from actual physical fuel shortages by its domestic production capacity and strategic reserves. However, Goldwyn warned that Asian and European buyers are already competing aggressively for American crude and refined product exports, creating upward price pressure domestically. He suggested diesel could reach $6 to $7 per gallon under that scenario.
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