U.S. gasoline and diesel prices near yearly highs as Middle East conflict persists

The U.S. average price for regular gasoline rose to $4.46 per gallon on Friday, just ten cents below the peak of $4.56 recorded in May. Six states, led by California at $6.11, now have average prices above $5 per gallon. Diesel prices also climbed, reaching $6.44 per gallon, a 71% increase since the conflict between the United States and Iran began in late February.

Shipping company CMA-CGM announced a new emergency fuel surcharge, citing heightened tensions in the Strait of Hormuz and the Bab el-Mandeb as drivers of higher fuel costs.

President Donald Trump, who has previously promised that gas prices would fall below $2 per gallon, acknowledged that a rapid decline may be unlikely, though he still expects a post-election drop. Analysts from HSBC, Goldman Sachs and Bank of America warned that continued disruptions in Persian Gulf oil flows could push Brent crude toward $120-$150 per barrel.

Brent crude hovered around $105 per barrel on Friday, with U.S. crude just above $103. The conflict in the Strait of Hormuz has reduced tanker traffic and raised insurance premiums, while attacks on Saudi pipelines and Russian diesel export bans have added further strain to global supplies.

In response to rising energy costs, French President Emmanuel Macron urged G-7 leaders to discuss possible releases from strategic reserves, noting that existing stockpiles are now at historically low levels.