Surpassing $4.50: U.S. Gasoline Prices Surge Amid Persistent Hormuz Deadlock

U.S. average retail gasoline prices climbed to $4.51 per gallon on Tuesday, marking the highest level since July 2022 as the conflict with Iran continues to obstruct the Strait of Hormuz.

American consumers are facing intensifying pressure at the pump, particularly in California, where prices have soared to $6.11 per gallon due to high taxes and refining constraints.

Since the outbreak of hostilities on February 28, national prices have surged by a cumulative $1.54 per gallon.

Analysts warn that without a peace agreement, the upward trajectory will persist; Patrick DeHaan of GasBuddy noted that U.S. inventories are at multi-year seasonal lows, while Lipow Oil Associates projects prices could hit $5.00 per gallon if the strait remains closed for another month.

Ironically, JPMorgan identifies the U.S. as the second most affected region behind Southeast Asia, a vulnerability driven by restricted domestic refining growth and fragmented regional markets.

Diplomatic and military efforts to break the deadlock have stalled.

President Trump’s "Freedom Plan" to escort commercial vessels was suspended on May 5 following skirmishes with Iranian forces and a lack of confidence from trapped shipping companies.

With Memorial Day and the summer driving season approaching, this price spike presents a significant political risk for the administration heading into the November midterm elections.