U.S. Gas Prices Surge as Iran Closes Strait of Hormuz
Fuel prices have spiked across the U.S. following a conflict with Iran and the closure of the Strait of Hormuz, which disrupted 20% of global oil supply.
National gasoline prices in the United States surged to over $4 per gallon by April 2026, the highest level since 2022. The spike followed a conflict between the U.S., Israel, and Iran that began in late February, specifically triggered by Iran's closure of the Strait of Hormuz. This disruption blocked approximately 20 million barrels of oil per day, representing 20% of the global supply.
Donald Trump postponed further strikes on Iranian energy infrastructure on March 23, leading to a brief price dip, but costs continued to climb. By early April, the national average reached $4.06 per gallon, with some analysts predicting a peak between $4.20 and $4.35. Regional impacts were severe; California averages reached $5.37, while Montana saw record-setting increases with some diesel prices jumping over a dollar in four weeks.
To mitigate the economic strain, the Trump administration considered waiving the Jones Act and easing EPA regulations on summer-blend gasoline. Some states, including Georgia, Maryland, and Connecticut, weighed pausing state gas taxes. Despite these efforts, consumers reported drastic budget cuts, including skipping meals and reducing childcare to afford fuel. Ride-share and delivery drivers reported decreased net earnings as fuel costs rose and tips declined.
