U.S. Gas Prices Surge Amid Strait of Hormuz Closure
U.S. gas prices have risen over 30 cents per gallon in the past week due to the ongoing closure of the Strait of Hormuz amid the Iran conflict.
Gasoline prices in the United States have increased by more than 30 cents per gallon over the past week, reaching an average of $4.446 for regular gas as of Sunday, up from $4.099 a week prior, according to AAA. This surge is attributed to the continued closure of the Strait of Hormuz amid the conflict in Iran.
The Strait of Hormuz, a critical passage for global oil and natural gas trade, has been effectively closed since late February following military actions by the U.S. and Israel against Iran. This disruption has led to significant supply constraints, causing oil prices to spike. Brent crude briefly exceeded $126 per barrel before settling around $114 per barrel, while West Texas Intermediate stood at approximately $104 per barrel.
President Trump has stated that gas prices will "drop like a rock" once the conflict concludes. However, experts caution that even after the reopening of the strait, prices may remain elevated. Kevin Book, co-founder of ClearView Energy Partners, noted that prolonged closure could lead to further price increases until demand decreases. He added that it could take months for normalcy to return, as ships trapped in the strait need to pass through, damaged facilities require repairs, and inventories must be replenished.
In response to the crisis, the U.S. Department of Energy released 17.5 million barrels of crude oil from the Strategic Petroleum Reserve between March 20 and April 24 to mitigate rising fuel prices. Additionally, seven OPEC+ countries announced an agreement to increase production by 188,000 barrels per day starting in June, aiming to stabilize the market.
The surge in gas prices coincides with a weakened U.S. dollar, which has depreciated about 10% from early January 2025 to the end of April 2026. This depreciation makes imported goods more expensive and could impact Americans traveling abroad, while potentially benefiting U.S. exporters.
The ongoing situation underscores the interconnectedness of global events and energy markets, with the closure of a key maritime passageway leading to tangible impacts on consumer prices and economic conditions in the United States.
