Overview
- Reports of a near one-page U.S.–Iran memorandum sent oil tumbling Wednesday, after AAA and GasBuddy showed the national gas average had climbed to about $4.52–$4.54, the highest since 2022.
- The Strait of Hormuz, which normally carries about one fifth of the world’s seaborne oil, remains largely closed, cutting supply and keeping a risk premium on crude and fuels.
- President Trump paused Project Freedom, the U.S. escort mission for merchant ships, after two guarded vessels drew Iranian fire during transits and with thousands of ships still unable to pass the strait.
- U.S. gasoline inventories fell to roughly 222.3 million barrels after a large weekly draw, and a recent unit outage at BP’s Whiting, Indiana, refinery helped drive sharp price jumps in Great Lakes states.
- Prices vary widely by state, with California above $6 per gallon, and pump prices typically lag crude by days, so any drop in oil will take time to show up at the pump.