Memorial Day gas prices hit highest level in years and could keep climbing

Gas prices in the U.S. have surged to their highest level in years, averaging $4.55 per gallon nationwide as of Friday, driven by the deadlock in reopening the Strait of Hormuz and rising global oil tensions. Analysts warn prices could climb further, potentially reaching $5 per gallon this summer, with full recovery unlikely even after the strait reopens, due to depleted oil reserves and sustained demand." "article": "Gas prices across the U.S. have reached their highest level since summer 2022, with the national average hitting $4.55 per gallon as of Friday, according to AAA. The increase comes as negotiations to reopen the Strait of Hormuz remain stalled, disrupting a key chokepoint for 20% of the world’s oil and gas supply. Memorial Day travelers face steep costs, with prices $1.36 higher than last year, and analysts predict prices could soon exceed $5 per gallon if the strait stays closed. The International Energy Agency (IEA) warned this week that global oil stockpiles are depleting at a record pace, risking a 'red zone' this summer if the Strait of Hormuz remains blocked. IEA chief Faith Birol noted that while emergency releases have added 2.5 million barrels of oil per day to the market, these reserves are finite and under growing pressure. U.S. commercial and emergency oil inventories have also dropped significantly, with the Strategic Petroleum Reserve down 10% since the start of the conflict, its lowest level in two years. GasBuddy forecasts the most expensive summer at the pump in years, attributing volatility to the Strait of Hormuz closure. Even if the strait reopens, prices may not normalize for up to a year, according to Patrick De Haan, head of petroleum analysis at GasBuddy. Higher oil prices—Brent crude has traded above $100 per barrel for weeks—are also pushing up costs for airlines, shipping, and food as transportation expenses ripple through the economy. Ed Hirs, an energy fellow at the University of Houston, warned that if no progress is made on the strait and reserve releases stop, oil prices could surge to $196 per barrel due to market fundamentals. West Texas Intermediate briefly reached $100 per barrel before retreating slightly amid reports of progress in ending the war. Summer travel demand and seasonal fuel blends further tighten supply, ensuring sustained high prices for drivers nationwide.