Oil Dips Below $91 as Hormuz Standoff Keeps Gas Near $4.10

Americans planning summer road trips, backyard cookouts and daily commutes are watching fuel costs eat deeper into budgets. National average gasoline prices reached $4.09 per gallon this month, up 93 cents from late March, according to AAA. Diesel climbed to $5.61, according to the same data, raising freight expenses that ripple through grocery aisles and propane tanks alike.

The central tension lies in volatile oil markets still reacting to every statement out of Tehran and Washington. Brent crude fell more than 9 percent to $90.38 a barrel on April 18 after Iran's foreign minister declared the Strait of Hormuz "completely open" during a 10-day Israel-Lebanon ceasefire, market data show. President Trump responded that the waterway was "ready for business," yet the U.S. Navy blockade of Iranian ports would continue until a broader nuclear and peace agreement. Iran then reversed course, stating it would maintain the blockage while the port measures remained. Roughly one-fifth of global oil supply normally passes through the strait, according to maritime analysts.

Prices had spiked earlier. Brent reached $119 a barrel on March 19 after the conflict intensified on February 28 with U.S. and Israeli strikes on Iranian targets. The near-total closure of Hormuz triggered emergency government measures worldwide and one of the sharpest energy shocks in recent memory. Ship-tracking data later showed a surge in vessels crossing once Iran signaled openness, with one maritime analyst noting it was the busiest traffic seen since the war began.

Those swings have reached U.S. consumers unevenly. Ride-hailing drivers report skipping long trips to remote areas where return fares may not offset higher fuel costs. One Pennsylvania driver who switched from Wall Street trading to full-time Uber and Lyft work said his weekly fill-ups jumped from $22 to $31 for the same hybrid Prius tank. He now favors back roads and shorter routes within 25 miles of home. Uber and Lyft previously introduced temporary per-ride surcharges during the 2022 Ukraine-related price spike; neither has announced identical relief this time, though both offer cash-back incentives through partner cards.

The pressure extends beyond the pump. Propane prices at the Mont Belvieu benchmark have risen nearly 19 percent since late February, according to industry data. Ranchers use fuel for tractors, feed transport and cattle hauling; those costs pass downstream. The U.S. cattle herd stands at its smallest size in 75 years, per USDA reports, after years of drought, high feed costs and an aging workforce. This structural shortage predates the current conflict. Retail beef prices climbed from roughly $8.70 per pound in March 2025 to about $10.08 a year later, according to USDA figures, though exact monthly matches vary slightly across reporting streams. Even if crude prices ease, beef and propane costs are unlikely to fall quickly.

Drivers cannot control global events but can adjust habits. AAA senior manager David Bennett recommends checking tire pressure monthly, as underinflation reduces fuel economy. He advises using the octane grade required by the vehicle owner's manual rather than the highest advertised, noting many engines run efficiently on regular fuel. Combining errands, avoiding rush-hour idling, removing unnecessary roof racks and traveling below 55 mph on highways each yield measurable savings, according to AAA studies. Apps that locate cheaper stations along routes can help, though the time spent driving to them must be weighed. Some households have shifted to remote work, carpools or e-bikes for short trips. One Texas logistics worker cut monthly fuel spending from an anticipated $750 to $79 after buying an electric vehicle, though he noted charger installation costs.

The latest Hormuz episode illustrates how quickly signals can reverse. Iranian officials first announced reopening tied to the Lebanon ceasefire, then conditioned continued access on lifting the U.S. port blockade. Pakistani diplomats have stepped in to facilitate further U.S.-Iran talks ahead of an April 22 deadline. Trump has warned of renewed strikes if no deal materializes. Oil traders remain cautious; any sustained closure would tighten already constrained supply and push prices higher again.

Retail gasoline has not yet reflected the latest crude decline. Refiners, seasonal demand shifts and regional distribution bottlenecks create a lag of weeks. Analysts expect pump prices to stay elevated into Memorial Day unless the diplomatic track produces a durable agreement. For many families the arithmetic is simple: every 10-cent increase at the pump adds roughly $120 to annual driving costs for the typical household. The question that remains is whether this summer's rituals, from cross-country vacations to neighborhood barbecues, will be scaled back or simply cost more.