Gasoline prices are displayed at a Mobil gas station on April 29 in Portland, Ore. — Jenny Kane/AP
Gas prices in the U.S. rose more than 30 cents a gallon last week and are expected to keep climbing as the Strait of Hormuz remains closed amid the Iran war. The cost for regular gas as of Sunday averaged $4.446 — a week earlier it was $4.099, according to AAA. U.S. gas was $2.98 on Feb. 26, two days before the war began, and a year ago the average was $3.171, AAA data show.
AAA says current prices are the highest since late July 2022. President Trump has said prices will “drop like a rock” when the war ends, but experts warn that even after the strait reopens, prices could stay elevated.
Kevin Book, co-founder of ClearView Energy Partners, says that when inventories are low and oil can’t move through the strait, prices should keep rising until demand contracts. He told NPR that it may be weeks or months — depending on how long the strait is closed — before prices peak from this crisis. Book added it could take months for ships trapped in the strait to transit, damaged facilities to be repaired, and inventories to be replenished. If prices fall quickly, he warned, the likely cause would be a recession reducing demand.
Between March 20 and April 24, the Department of Energy released 17.5 million barrels from the U.S. Strategic Petroleum Reserve to try to curb fuel costs, per the U.S. Energy Information Administration. On Sunday, seven OPEC+ countries announced they would increase production by 188,000 barrels per day starting in June as a commitment to market stability.
Higher pump prices are squeezing Americans’ budgets amid a weakened U.S. dollar. The dollar depreciated about 10% from early January 2025 to the end of April 2026, with the largest losses in the first half of 2025, according to Morgan Stanley. A weaker dollar can make travel abroad and imported goods more expensive while potentially helping American exporters.