Retail gasoline and diesel prices in the US have reached their highest seasonal levels ever, posing a challenge for consumers planning summer travel.
While fuel costs have eased slightly in recent days, retail prices remain elevated, especially for this time of year. Gasoline averaged $4.12 a gallon on Monday, a record for the date and surpassing the previous high of $4.07 set in 2022. National average diesel prices sat at $5.65 a gallon, more than 60 cents above their previous high-water mark for this time.
The war in Iran has choked off traffic through the Strait of Hormuz, a vital waterway through which nearly a quarter of the world's seaborne oil travels. This has sent crude oil prices higher and fueled the biggest jump in US inflation in nearly four years.
The surge in gasoline prices and diesel costs is rippling through to airfares, food, and transportation costs. Gasoline prices have risen more than $1.10 per gallon since the US and Israel launched attacks on Iran at the end of February.
US Energy Secretary Chris Wright said that gasoline prices could remain elevated for 'a few more weeks.' The US Energy Information Administration projects retail gasoline prices will average $4.16 a gallon in the second quarter if the conflict ends in April, before easing to average $3.55 by the fourth quarter.
