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U.S. Gasoline Hits Four-Year High as Iran Talks Stall and Hormuz Stays Constricted

A near-shutdown of the Strait of Hormuz is squeezing supply, lifting fuel costs worldwide.

Overview

  • AAA’s national average reached $4.18 a gallon Tuesday, the highest price of 2026 and the most since early 2022.
  • Oil rebounded after a brief ceasefire dip, with Brent near $108–$111 and WTI around $99–$101, as negotiations faltered and shipping data showed only limited tankers moving through the Strait of Hormuz, a route that normally carries about one‑fifth of the world’s oil.
  • Diesel climbed to $5.46 a gallon, and economists warn higher trucking and freight costs will flow through to grocery bills and airfares even if fighting eases.
  • Price pain is uneven across the U.S., with California averaging $5.95 and some stations above $6, while parts of the Midwest saw sharp jumps tied to refinery troubles in Indiana and Illinois.
  • The World Bank now projects a 24% rise in energy prices this year, and views on a peak diverge as Energy Secretary Chris Wright recently said prices likely peaked but Chevron’s CEO said it is too soon to call; some analysts also point to the UAE’s planned exit from OPEC on May 1 as a longer‑term supply wildcard.