Particle.news
Download on the App Store

Oil Surge Sends U.S. Gas to 4-Year High as Hormuz Stays Constrained

The Iran conflict has squeezed a key oil route, driving a fuel shock into daily life.

Overview

  • U.S. pump prices, which AAA put at a $4.30 national average on Thursday, jumped to their highest since 2022 as drivers reported cutting fill‑ups and changing travel plans.
  • Brent crude briefly hit about $126 a barrel on Thursday before easing near $111 on Friday, reflecting sharp volatility as traders weigh prolonged disruption through the Strait of Hormuz.
  • Regional pain deepened with California averaging $6.01, Chicago topping $5, and one San Francisco station posting $7.15, while a Whiting, Indiana refinery outage and maintenance elsewhere tightened Midwest supplies.
  • Federal Reserve Chair Jerome Powell warned higher energy costs can lift inflation and curb spending, as diesel and jet fuel climbed and United Airlines weighed fare increases to offset fuel bills.
  • The chokepoint at Hormuz—normally carrying roughly a fifth of global oil—remains effectively closed as U.S.–Iran talks stall, and analysts expect broader price pass‑through to goods moved by truck, rail and ship in the weeks ahead.