ECONOMY

U.S. Gas Prices Surge Amid Iran Conflict Disruptions

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United States: Gasoline prices rose sharply this week as reports linked the increase to the Iran conflict and disruptions in the Strait of Hormuz, pushing the national average to about $4.55 per gallon on Wednesday, May 22, according to AAA figures cited by international and local outlets. Local averages vary, with some areas above $4.10 per gallon. This Memorial Day weekend, tens of millions of Americans are traveling despite higher costs, with AAA and other services estimating 39–45 million car trips and warning of expensive summer months; Federal Reserve Bank of New York data show lower-income households cut fuel use by roughly 7% but are spending about 12% more, and analysts predict elevated prices could last into 2026.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

February — Conflict involving Iran begins, introducing new supply risks.
May 20 — GasBuddy issues forecast warning of a costly summer if Strait closure persists.
May 22 — AAA reports U.S. national average at ~$4.55 per gallon (Xinhua).
Late May (Memorial Day weekend) — AAA and NYT estimate tens of millions traveling despite higher fuel costs.
Analysts and Federal Reserve Bank of New York release data showing reduced consumption but higher spending by lower-income households.

Why This Matters to You

Rising gas prices affect your wallet. If you're planning a road trip or commute daily, expect to pay more at the pump. Lower-income households are already feeling the pinch, cutting fuel use but spending more.

The Bottom Line

Analysts predict these high prices could stick around until 2026. It's a good time to consider fuel-efficient vehicles or public transportation. Worth forwarding if you know someone thinking about a new car.