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Gas Prices Hold Near $4.47 as Oil Jumps on Iran Tensions and Tax Relief Debates Intensify

Markets remain highly sensitive to Strait of Hormuz risks, leaving travelers braced for higher Memorial Day fuel costs.

Overview

  • U.S. pump prices averaged $4.47 per gallon on Monday after a 1‑cent weekly dip, with sharp regional splits as Michigan rose to $4.84 and Florida eased to about $4.23.
  • Oil climbed roughly $10 per barrel last week after talks failed to ease the Iran standoff, and AAA reported gasoline futures up 18 cents, signaling potential price rebounds into the holiday.
  • GasBuddy’s Patrick De Haan pushed back on panic forecasts, saying national averages near $7 per gallon are not realistic in the near term.
  • Policy moves are widening, with Georgia extending its state gas‑tax suspension through June 3 and a federal holiday proposed by President Trump as Sen. Josh Hawley filed a 90‑day bill.
  • Independent analyses estimate households have absorbed roughly $40–45 billion in extra fuel costs since the Iran war began, a burden made worse by tight oil supplies and the Strait of Hormuz’s role as a key shipping chokepoint.