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Gas Prices Hit Four-Year High as Hormuz Disruption Collides With Midwest Refinery Woes

The surge reflects a supply squeeze from the Strait of Hormuz shutdown that could take months to unwind.

Overview

  • Following Friday's jump, the national average reached $4.43 a gallon Saturday, the highest since 2022, according to GasBuddy.
  • Major metros set the pace, with Chicago averaging $5.17 Friday and the Bay Area at $6.24 and within days of a new record, AAA and local reports show.
  • The chief driver is a shutdown of the Strait of Hormuz, a route for about one‑fifth of world oil, which sent crude above $100 and lifts pump prices roughly 25 cents for each $10 move.
  • Local refinery troubles in Indiana and Illinois further cut Midwest supply, producing outsized spikes in Ohio and Wisconsin where some stations touched $4.99 and the state average rose about 50 cents in a week.
  • Higher fuel costs are pushing up freight and airfares and have already added about $19 billion to U.S. gas spending, which economists say is eroding tax refund gains and prompting some drivers to cut trips or buy EVs.