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U.S. Gas Tops $4 as Iran Conflict Chokes Oil Flows

Disruption at the Strait of Hormuz has choked oil shipments, driving a global price surge with limited near‑term relief.

Overview

  • Gasoline averaged about $4.02 per gallon Tuesday, the highest since 2022, with diesel near $5.45, in what GasBuddy and AAA reported as a record monthly jump.
  • Attacks and effective restrictions around the Strait of Hormuz have slashed tanker traffic through a route that normally carries about one‑fifth of seaborne oil, a shock the IEA calls the largest supply disruption on record.
  • Crude benchmarks stayed above $100 per barrel after weeks of war‑driven gains, including a fresh spike after Kuwait reported a tanker attack near Dubai.
  • The administration moved to ease shortages through a 172 million‑barrel Strategic Petroleum Reserve release, a 60‑day Jones Act waiver, and a temporary E15 gasoline waiver starting May 1, though analysts say prices will not ease meaningfully unless flows through Hormuz resume.
  • Prices vary widely by state as California averages about $5.88 per gallon, and the squeeze is already hitting budgets and freight costs, with analysts warning of stronger inflation and the risk of further pump increases if the conflict drags on.