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U.S. Gasoline Average Reaches $3 as Strait of Hormuz Risks Mount

Analysts warn even brief shipping disruptions near Iran could trigger faster pass-through to pump prices.

Overview

  • AAA data show the national average rose to roughly $3 on Monday after climbing five cents in a week and about 11 cents since early February.
  • Severe winter storms and refinery outages in January and February tightened supply and helped push prices up from a mid-January low near $2.79.
  • Reports cite U.S. and Israel strikes on Iran and retaliatory actions disrupting traffic near the Strait of Hormuz, a route for nearly 20% of global oil shipments.
  • Energy economist Severin Borenstein says a brief disruption may have limited effects but a sustained blockage could cause a sharp short-term spike, with about $1 per barrel adding roughly 2.5 cents per gallon.
  • GasBuddy expects noticeable increases rather than an overnight surge, with seasonal blend changes and spring travel adding pressure, while West Coast prices remain far above average (California about $4.65; San Francisco about $4.83).