Hormuz Blockade Sends Gas to $4.55, Highest in Four Years

U.S. drivers are facing gasoline prices near four-year highs this Memorial Day weekend, with the national average reaching $4.55 per gallon as of Friday, marking a 50% increase since the United States and Israel launched their war with Iran on Feb. 28. The surge stems from Iran's blockade of the Strait of Hormuz, the world's most critical oil export route connecting Persian Gulf producers to global markets, which has triggered what analysts describe as the largest disruption to oil supplies in history. Oil prices have spiked more than 40% from pre-war levels, and Patrick De Haan, head of petroleum analysis at GasBuddy, warned that prices could hit $5 per gallon by June if the strait remains closed. The Memorial Day weekend typically marks the start of the summer driving season, amplifying the financial impact on American consumers. President Donald Trump this week called off imminent strikes on Iran to allow time for negotiations, causing oil prices to fall nearly 7%, yet the president has repeatedly promised a quick end to the war only to see tensions escalate again. Trump stated Tuesday that he is not considering Americans' financial situation as he pursues a nuclear agreement with Iran, saying "We cannot let Iran have a nuclear weapon." De Haan expressed skepticism, noting the market needs verifiable steps toward reopening Hormuz before $5 gasoline can be avoided, and that pump prices likely will not normalize until well into 2027 even after a resolution. While the United States is insulated from physical fuel shortages due to its robust domestic production and strategic reserves, global competition for U.S. crude oil and refined products is driving domestic prices higher. Former State Department energy envoy David Goldwyn noted that Asia and Europe are competing for American exports following the loss of Middle East supplies, predicting diesel prices could reach $7 per gallon. Meanwhile, Canadian retail data from Statistics Canada showed gas station sales rose 12.4% in March as the Iran conflict boosted prices, contributing to an overall 0.9% increase in retail sales to $72.7 billion, though core retail sales excluding gasoline and vehicles fell 0.1%.