Americans are paying a growing premium at the pump.
Gasoline prices hovered at $3.99 per gallon on Monday, their highest level since 2022, according to AAA data. The national average at the pump has risen by more than $1 over the past month as shipping through the Strait of Hormuz, a crucial oil passage, remains nearly at a standstill.
“The situation remains highly volatile and unpredictable, but upward pressure on fuel prices is likely to persist as long as global oil supplies are constrained by the continued disruption in the Strait,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a note.
“Rough calculations show Americans collectively have spent ~$8 billion more on gasoline in the last month since the U.S. attacked Iran, a number that will surpass $10 billion in the days ahead,” he said.
Read more: What an extended war with Iran could mean for gas prices
While consumers had to shell out more money to fill up their vehicles, truckers have been paying even more. On Monday, the national average for diesel hit $5.41 per gallon, up 44% from a month ago.
The West Coast has seen the steepest increases, with diesel price touching a record $7.36 per gallon and gasoline only $0.12 shy of $6 per gallon.
A lack of refineries, high taxes, and reliance on refined fuel imports from Asia have left the state particularly vulnerable.
“It is a big deal,” Tom Kloza, chief energy adviser at Gulf Oil, recently told Yahoo Finance, adding that “most observers believe the state is operating without a safety net.”
“If a refinery gets idled (by power outages, events, or whatever) there will be another spike in prices,” he said.
West Texas Intermediate (CL=F) crude futures surpassed $102 per barrel while global benchmark Brent (BZ=F) touched around $108 per barrel on Monday.
Read more about oil prices and today’s market action.
Last week, US Marines and airborne troops were deployed to the Middle East. Special operations forces have since joined them as Washington weighs options to reopen the strategic Strait of Hormuz.
The vital waterway has emerged as a key flash point in the Iran conflict. President Trump has extended a pause on strikes targeting Iran’s energy infrastructure and indicated the US is engaged in talks with Tehran.
Over the weekend, Houthi rebels announced they were joining the broader Middle East conflict, raising risks in the Red Sea region along Saudi Arabia’s western coast. Riyadh has recently managed to reroute more than 5 million barrels of oil per day through the Port of Yanbu, bypassing the Strait of Hormuz.