US Gas Prices at Memorial Day High Not Seen Since Ukraine War

Americans faced the steepest gas prices Memorial Day weekend since Russia’s invasion of Ukraine, Benzinga reported Monday, citing American Automobile Association data showing a national average of $4.507 per gallon. Prices briefly touched $4.515 on Sunday before retreating slightly.

Pump Prices Reach a Four-Year Peak

The last time Memorial Day drivers paid this much, Russia had just launched its full-scale assault on Ukraine. That conflict sent commodity markets into a sharp spiral. The AAA data puts the current national average just below the May 2022 peak of roughly $4.545 per gallon recorded by the Energy Information Administration as that war escalated.

The figures arrive as US motorists take to highways in large numbers for the traditional start of summer travel season. Higher fuel costs at this time of year carry particular economic weight, feeding directly into consumer sentiment and discretionary spending.

Also Read: Oil Markets Brace for OPEC Supply Decision Amid Demand Uncertainty

Investors Sound the Alarm on Consumer Pressure

Investor Ross Gerber of Gerber Kawasaki took to social media Monday to flag the economic stakes. He argued that markets stood to gain significantly if crude kept declining. He described lower pump prices as immediately necessary for the broader economy, echoing a point made separately by economist Mohamed El-Erian, who highlighted reports of progress in US-Iran nuclear negotiations.

Crude prices have moved on those diplomatic signals. Talks between Washington and Tehran, if successful, could eventually bring more Iranian supply back to global markets. That prospect alone has weighed on oil benchmarks in recent sessions.

Background: How 2022 Set the Benchmark

The spring of 2022 marked a painful stretch for American consumers at the pump. Brent crude surged past $130 per barrel in the weeks after Russia’s February invasion. US retail gasoline prices climbed in lockstep, peaking above $5 per gallon in California and several other states. The Federal Reserve was already pivoting toward aggressive rate hikes, and elevated energy costs compounded inflationary pressure across the economy.

Also Read: US Inflation Data Keeps Fed Rate Cut Timeline Uncertain

What Comes Next

Any durable relief at the pump likely depends on two variables moving in the same direction: a credible Iran deal that loosens supply, and sustained demand softness from a slowing global economy. Neither is guaranteed. GasBuddy and EIA analysts will be watching weekly inventory reports closely for early signals heading into the summer driving peak.

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