Gasoline prices in the U.S. have surged sharply

The spike has hit American drivers hard, and the cause is rooted in a global energy crisis triggered by the conflict with Iran. Crude oil the core component of gasoline has been climbing steadily for two months as the Strait of Hormuz, a vital chokepoint through which one‑fifth of the world’s crude normally flows, remains effectively shut. Oil tankers have been stranded, unable to deliver their cargo, creating the largest supply disruption in modern oil‑market history.

For a brief moment in mid‑April, drivers saw relief. Signs of a potential ceasefire pushed crude prices down, gasoline spot prices followed, and retailers lowered pump prices for nearly two weeks. Rob Smith, director of global fuel retail at S&P Global Energy, said the initial ceasefire announcement sparked “optimism that this really could be the beginning of the end of the conflict,” leading to a temporary dip in prices.

But that optimism faded quickly. As the war dragged on, prices reversed course and began climbing again. Smith noted that a “fundamental shortfall” in global supply is now unavoidable. Every day the Strait of Hormuz remains constrained, he said, “true upward pressure” continues to push prices higher regardless of government statements or market speculation.

Gas station owners ultimately set prices at the pump, but their decisions are heavily shaped by crude oil costs. In 2025, crude accounted for about 51% of the price of a gallon of gasoline in the U.S., according to the Energy Information Administration. When crude prices rise, gasoline prices almost always follow. With oil hitting as high as $112 per barrel in early April, the surge at the pump was inevitable.

The ongoing conflict and the bottleneck at one of the world’s most critical oil passages mean drivers may continue to feel the strain. Until the Strait of Hormuz fully reopens and global supply stabilizes, the pressure on gasoline prices is unlikely to ease.