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U.S. Gas Prices Hit $4.14 With $5 Looming if Hormuz Stays Shut

A near-halt in Strait of Hormuz traffic has trapped oil at sea, tightening supplies.

Overview

  • AAA's national average reached $4.14 on Tuesday, with 23 states plus Washington, D.C., above $4 and five states above $5, led by California at $5.93.
  • Diesel now averages about $5.64 to $5.65 nationwide, and GasBuddy says San Francisco became the first U.S. city with diesel above $8 per gallon.
  • J.P. Morgan analysts say prices could top $5 later this month if the Strait of Hormuz stays effectively closed through mid-April, with President Trump's 8 p.m. ET Tuesday deadline to reopen the waterway adding risk.
  • A United Nations panel says ship transits through Hormuz fell from roughly 130 a day in February to six in March, though Bloomberg counted 21 over the weekend in a small uptick through a strait that carries about one-fifth of seaborne oil.
  • The U.S. Energy Information Administration expects months to restore flows and projects fuel prices to stay above pre-conflict levels through 2026, with diesel peaking near a $5.80 April monthly average.