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Diesel Tops $5 Nationwide In Hormuz Oil Shock, Gasoline Average Hits $3.79

Disrupted traffic through the Strait of Hormuz is squeezing oil supply, raising the risk of broader inflation.

Overview

  • AAA reports diesel at $5.04 a gallon, the highest since December 2022, with prices up 34% since late February as the Iran conflict escalated.
  • Regular gasoline now averages $3.79 nationally, up 27% in two weeks, with analysts warning prices could approach $4 if disruptions persist.
  • Brent trades around $101 and U.S. crude near the mid‑$90s, roughly 40% above prewar levels, as tanker traffic through Hormuz is curtailed and strikes hit regional energy sites including the UAE’s Fujairah hub.
  • The U.S. began a large Strategic Petroleum Reserve release of about 86 million barrels expected to reach markets by week’s end, while shippers and airlines add fuel surcharges and raise fares.
  • Price pain is uneven: California’s average is about $5.54 (San Diego $5.81), metro Detroit stations have topped $4, and Georgia and Cincinnati saw sharp overnight jumps, with seasonal fuel shifts adding pressure; GasBuddy notes diesel’s largest two‑week spike on record, about $1.20.