SouthernWorldwide.com – Gasoline prices in the United States have reached their highest point since July 2022, averaging $4.54 per gallon as of Wednesday, according to data from AAA.
The cost of regular gasoline has seen a substantial increase of 52%, or $1.56 per gallon, since the conflict in Iran began in late February. This surge is attributed to disruptions in oil supplies from the Middle East, which are impacting motorists’ expenses.
Interestingly, fuel costs continued to climb even as oil prices experienced a slight decrease on Wednesday. This was due to renewed optimism regarding a potential U.S.-Iran agreement. However, persistent concerns about supply chain vulnerabilities and the possibility of wider conflict in the Middle East have kept fuel prices on an upward trajectory over the past week.
Patrick De Haan, a petroleum analyst at the tracking service GasBuddy, noted in a report that gasoline prices have risen in every state. He highlighted particularly significant and rapid increases in the Great Lakes region, where states like Michigan, Indiana, Ohio, and Illinois experienced sharp spikes, while Wisconsin saw more moderate gains.
The international benchmark for crude oil, Brent crude, fell by $7, or 6.4%, to $102.83 per barrel on Wednesday. Similarly, the U.S. benchmark, West Texas Intermediate, dropped by 6% to $96.11. Global oil supplies are currently tight because the Strait of Hormuz, a crucial waterway for oil and liquefied natural gas transport, remains largely inaccessible to shipping traffic. This strait accounts for approximately 20% of the world’s oil and LNG trade.
“We are now more than two months since the conflict started,” stated Dave Sekera, chief U.S. market strategist at Morningstar, in an email. “It appears we are no closer to a long-term resolution. While some vessels are managing to pass through the Strait of Hormuz, effectively, it still seems closed, and the supply of oil and natural gas remains significantly lower than before the conflict.”
When Will Gas Prices Decrease?
Experts anticipate that even if a peace deal is reached between the U.S. and Iran, gasoline prices are likely to remain elevated for several more months. A forecast from Goldman Sachs in April suggested that Brent crude would likely trade around $80 per barrel by the end of the year, which is about $10 higher than pre-conflict levels.
Goldman Sachs based this projection on the assumption that oil supplies in the Persian Gulf would normalize by mid-May. However, the investment bank also acknowledged “significant upside risks” to its forecast.
A report from the investment bank on May 4 indicated that global oil inventories are approaching their lowest levels since 2018, raising concerns about a potential supply shortage.
“As the oil tanks empty and we deplete the remaining inventory, that’s when the real crunch will begin to hit,” John Quigley, a senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania, told CBS News Philadelphia. “Prices will have to go much higher.”
Several factors influence gas prices beyond the cost of crude oil. These include the availability of petroleum supplies and the speed at which refineries in the Middle East can resume operations after sustaining damage during the Iran war. Additionally, seasonal demand, such as increased gasoline consumption during the summer months, typically contributes to higher fuel costs, according to De Haan.
“With so many variables at play, the outlook remains highly uncertain, and while some localized price relief might occur, broader price volatility is likely to persist in the short term,” De Haan stated in his report.
Edited by
Alain Sherter
Read more : Cento Accused of Tomato Fraud in Lawsuit
© 2026 CBS Interactive Inc. All Rights Reserved.
