US Gas Nears $4.48 Memorial Day Record as Iran War Adds $43 Billion Energy Hit
Updated
Updated · CNN · May 20
US Gas Nears $4.48 Memorial Day Record as Iran War Adds $43 Billion Energy Hit
5 articles · Updated · CNN · May 20
$4.48 a gallon is the Memorial Day national average GasBuddy expects, up 42% from a year ago and the second-highest on record as tens of millions of Americans head into the summer driving season.
The surge stems from the Iran war's supply shock: US commercial and emergency oil inventories posted a record weekly drop, and the Strategic Petroleum Reserve has fallen 10% since the conflict began.
$5 a gallon could arrive next month if the Strait of Hormuz stays closed, GasBuddy said, with the summer average projected at $4.80—above the prior record of $4.43 set in 2022.
$43 billion in added energy costs since the war began—about $24 billion from gasoline alone—has pushed inflation near 4%, shrunk real wages and left just 21% approving of Trump's handling of gas prices.
With the US emergency oil reserve at historic lows, how vulnerable are we to the next global shock?
The war with Iran is disrupting more than oil. Is a global food crisis the next domino to fall?
Beyond temporary fixes, what is the long-term solution to the world's reliance on the Strait of Hormuz?
The 2026 Iran Conflict and the U.S. Gas Price Surge: Economic, Political, and Global Supply Chain Impacts
Overview
The Iran war, which began in late February 2026, quickly destabilized global energy production and triggered a sharp spike in fuel prices across the United States. This surge has been especially hard on commuters, with some seeing weekly gas costs jump from $50 to $80. As average gasoline prices in several states rose above $5 per gallon and diesel prices climbed even higher, the cost of transporting goods increased, leading to higher prices for everyday items. These rising expenses are straining household budgets, forcing many Americans to cut back on other spending and deepening the economic impact nationwide.