Business & Finance
U.S. gas and diesel prices rise amid Strait of Hormuz shipping disruptions
Average fuel costs top $4 per gallon as conflict with Iran strains supply chains and transportation sectors.
The short version
- Average nationwide gasoline prices climbed above $4 per gallon for the first time since 2022 following conflict-driven shipping disruptions.
- Higher fuel and diesel costs are increasing operational expenses for agricultural workers, delivery drivers, transit services, and the U.S. Postal Service.
- Energy analysts anticipate fuel prices will remain high until maritime traffic resumes through the Strait of Hormuz.
Key facts
- Data from AAA indicates average U.S. retail gasoline prices surpassed $4 per gallon on March 31, reaching levels not seen since 2022.[CBS News]
- Roughly 20 percent of the global oil supply travels through the Strait of Hormuz.[CBS News]
- Diesel prices have climbed faster than standard gasoline, compounded by supply shortages that predated the conflict with Iran.[CBS News]
- According to the U.S. Energy Information Administration, crude oil represents roughly half of retail gasoline costs, with refining, distribution, and taxes making up the remainder.[CBS News]
What remains uncertain
- The timeline for the resumption of commercial maritime shipping through the Strait of Hormuz remains unclear.[CBS News]