finance
U.S. Gas Prices Rise 50% to $4.45 per Gallon
U.S. regular gas prices have climbed to an average of $4.45 per gallon, marking a 49.3% increase since the Iran war started on February 28. Prices rose 35 cents in the past week amid the ongoing closure of the Strait of Hormuz. Efforts to mitigate the spike include releases from the Strategic Petroleum Reserve and planned OPEC+ production increases.
DE
MA
680news.comAudio version
Tap play to generate a narrated version.
U.S. 45 per gallon in the current period, according to AAA. 3% increase since the conflict began.
The Iran war started on February 28, and the Strait of Hormuz remains closed amid the fighting. U.S. 099 one week ago, AAA data shows.
171. U.S. gas prices increased more than 30 cents per gallon last week and are now the highest they have been since late July 2022, according to AAA.
President Trump stated that gas prices will drop like a rock when the war in Iran ends. U.S.
Energy Information Administration. Seven countries within the OPEC+ group announced on Sunday they agreed to increase production by 188,000 barrels per day starting in June. U.S.
Dollar, which depreciated about 10% from early January 2025 to the end of April 2026, according to an analysis by Morgan Stanley. U.S. dollar losses in the first half of 2025 were the biggest since 1973, Morgan Stanley reported.
Gasoline prices are displayed at a Mobil gas station in Portland, Oregon, on April 29, where costs have risen alongside national trends. Kevin Book, co-founder of ClearView Energy Partners, said prices could continue rising the longer the Strait of Hormuz stays closed, a crucial route for oil and natural gas trade.
"When inventories are low and you can't get oil out of the ground or out of the strait, you should expect prices to keep rising at least until demand capitulates and starts to contract," Book told NPR's Ayesha Rascoe on Weekend Edition on Sunday.
He added that it could take months for ships trapped in the strait to get through, damaged facilities to be repaired, and inventories to be replenished before prices return to normal. Book predicted that even if gas prices fall quickly, the reason would "probably be a bad one, not a good one," such as a recession undercutting demand and knocking the knees out from under the market.
