US gasoline prices jump to $4.24 after Hormuz closure
Updated
Updated · Responsible Statecraft · May 4
US gasoline prices jump to $4.24 after Hormuz closure
15 articles · Updated · Responsible Statecraft · May 4
April prices rose from $3.77 in March and $3.03 before the war, as EIA data showed a 6.2 million-barrel US inventory drawdown.
The report says Iran's closure of the Strait of Hormuz has removed about 10 million barrels a day from global supply, with US exports diverted to higher-priced Asian markets.
It argues the US will be hit harder than China, Russia and the EU because its economy is more oil-intensive, warning higher pump prices could worsen inflation and recession risks.
If America is the world's top oil producer, why does it face a recession threat from soaring gas prices?
With oil now trading in yuan, is the era of the petrodollar finally coming to an end?
While the oil crisis pushes for EVs, could AI's huge power needs keep America tied to fossil fuels?
Record $4.11 Gasoline Prices in 2026 Driven by Strait of Hormuz Blockade
Overview
In early 2026, Iran closed the Strait of Hormuz, blocking about 10 million barrels of oil daily and triggering a historic global supply shock. This disruption, worsened by attacks on alternative routes, caused U.S. gasoline prices to soar above $4 per gallon and diesel prices to rise sharply, fueling inflation and adding $19 billion in extra fuel costs for American consumers. The crisis strained transportation, airlines, and tourism, while also pressuring fertilizer production due to natural gas shortages. Diplomatic efforts to reopen the strait stalled, pushing oil prices higher and accelerating electric vehicle adoption. The prolonged disruption is reshaping global energy strategies, emphasizing the urgent need for diversification and a faster transition to renewables.