Fuel prices hit records as Iran blocks Strait of Hormuz

Gasoline and diesel prices have climbed sharply across the country since the U.S. and Israel entered the conflict with Iran in late February, leaving drivers, truckers and small businesses facing costs not seen in years. The national average for regular gasoline now sits at $4.55 a gallon, up roughly $1.50 from prewar levels, while diesel has reached record territory in several states.

Memorial Day weekend travel plans are already feeling the squeeze. AAA projects more than 39 million Americans will take to the roads, yet pump prices in places like California have hit $6.14 and Washington state $5.70. Those figures eclipse recent summer peaks and add pressure on families already dealing with higher food costs.

The war has kept about 20 million barrels a day of oil off the global market by disrupting traffic through the Strait of Hormuz. Energy analysts note that even if fighting stopped tomorrow, restoring full supply chains and checking damaged infrastructure in the region could take months or longer. Retail prices rarely fall as fast as they rise, and experts see little chance of a return to the $3 national average anytime soon in 2026.

Diesel’s climb has hit commercial operators first. In the Chicago area the average reached $6.30 a gallon by mid-May, breaking the previous record set after the 2022 Ukraine invasion. Food-truck owner Ricardo Guerrero in Cicero now spends several hundred dollars more each week just to keep his three trucks running between downtown attractions. Trucking and rail costs eventually pass through to store shelves, so higher diesel eventually shows up in the price of groceries and household goods.

Propane and beef prices have also moved higher, raising the cost of summer cookouts. Ground beef averaged $6.90 a pound in April, nearly double the level of a decade ago. Combined with fuel-driven spikes in transportation and packaging, backyard barbecues are noticeably more expensive this year.

The White House has responded with releases from the Strategic Petroleum Reserve, a proposed federal gas-tax holiday and a temporary waiver of the Jones Act to speed fuel shipments between U.S. ports. Those steps have not reversed the trend at the pump. Drivers in swing states and rural areas, where longer commutes are common, feel the added expense most directly.

The conflict’s effects extend beyond the immediate region because so much of the world’s seaborne crude moves through one narrow waterway. Until that route operates normally again, supply remains tight and price relief stays limited. Everyday Americans continue to absorb the difference at the station and in their monthly budgets.