Overview
- Memorial Day weekend saw near‑four‑year highs at the pump, with the national average around $4.50 per gallon while California topped $6.00, even as roughly 39–40 million Americans drove for the holiday.
- Reports that U.S. and Iranian negotiators were nearing a deal pushed oil futures below $100 per barrel and helped national pump averages fall modestly to just under $4.50 by May 26.
- Regional gaps remain large: several Gulf and Midwestern states report averages near or below $4.00 while West Coast states are still paying well over $5.00 to $6.00 per gallon.
- Energy analysts warn that any diplomatic breakthrough will not instantly lower retail prices because crude must be bought, shipped through reopened routes, refined into summer blends and then delivered to stations.
- The closure of the Strait of Hormuz tightened global crude flows and created the price shock; policymakers have used tools such as SPR releases and tax waivers but wholesale, refining and distribution constraints mean volatility and elevated prices could persist for months.