US Gas Prices Spike After Trump Ends Iran Ceasefire

U.S. gasoline prices rose for the first time since May 11, ending an eight-week streak of declines after Donald Trump declared a tentative peace deal with Iran "over." The collapse of the ceasefire triggered renewed drone and rocket exchanges, prompting the United States to implement a naval blockade in the Strait of Hormuz, a critical chokepoint through which a fifth of the world's oil passes.

National average gasoline prices increased by roughly 10 cents to $3.82 per gallon, while diesel averages rose to $4.85. Regional spikes were severe, with Columbus, Ohio, seeing a 26.5-cent jump and Minnesota prices increasing by 17.3 cents. In Canada, national averages rose by 3.4 cents per litre. Brent crude oil climbed toward $86.90 a barrel as both the U.S. and Iran asserted control over the Strait of Hormuz, disrupting tanker traffic.

Market analysts cite additional pressures on refined product supplies due to Ukrainian attacks on Russian refineries. While the International Energy Agency expects a decline in global oil demand this year, petroleum analysts warn that geopolitical instability and summer travel demand will maintain price volatility. Recent reports from the Energy Information Administration also noted a sharp leap in average diesel prices, particularly in the Gulf Coast and Lower Atlantic regions.