Key Takeaways
American drivers are facing record-high fuel costs as the energy shock from the US-Iran war continues to ripple through the economy, with the national average gasoline price climbing to $4.12 per gallon on Monday.
"We're going to see energy prices high - and maybe even rising - until we get meaningful ship traffic through the Strait of Hormuz," US Energy Secretary Chris Wright said in an interview. He added that he expected prices to peak in the coming weeks.
Data from the American Automobile Association (AAA) confirmed the new records, showing gasoline prices have surpassed the previous high of $4.07 set during the 2022 Russia-Ukraine conflict. Diesel prices have seen an even steeper climb, now standing at $5.65 per gallon, more than 60 cents above the 2022 peak. Since the US and Israel began military strikes against Iran in late February, gasoline prices have risen by more than $1.10 per gallon.
The conflict has severely disrupted global energy flows, with the Strait of Hormuz—a critical chokepoint for nearly a fifth of global oil and gas shipments—becoming a flashpoint. While global benchmark Brent crude prices eased slightly to around $98 a barrel on hopes of peace talks, they remain at elevated levels. The sustained high cost of diesel, a primary fuel for freight, agriculture, and industrial production, is directly fueling broader inflation by increasing costs for food and logistics.
This article is for informational purposes only and does not constitute investment advice.
