U.S. gas prices have surged in recent months as the Strait of Hormuz continues to operate at a near standstill. Since the beginning of the U.S.-Iran war on February 28, prices at the pump have climbed to $4.46 from $2.98, or a rise of 50%. That marks the highest level since July 2022.
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Forget margin or options. Here's how the pros trade QQQHowever, prices across the country are highly dispersed due to differences in state taxes, transportation costs, and local supply constraints. “The top 10% of stations average $5.77/gal, while the bottom 10% average $3.70/gal, a gap of over $2 per gallon,” said GasBuddy Head of Petroleum Analysis Patrick De Haan.
Summer Travel Faces Fuel Cost Risk
Gas prices could spike even higher if traffic through Hormuz remains constricted, said ClearView Energy Partners co-founder Kevin Book. In addition, the war has resulted in damaged energy infrastructure in the Middle East and dwindling inventory. Both of these issues could take several months to fix and will likely contribute to persistently elevated prices.
Consumers shouldn’t expect a quick return to “normal” levels. That could pose an issue for the travel plans of millions of Americans as the summer gets started.