U.S.-Iran War Stalemate Drives Oil Prices Above $126 and Gas to $4.30

Oil and gas prices surged amid a U.S.-Iran war stalemate, with traders reacting to fears of escalation and the status of the Strait of Hormuz.

“US gasoline prices hit highest level in 4 years The price of an average gallon of gas is $4”

ABC News

Scripps News reported that oil prices “briefly surged above $126 a barrel Thursday, the highest in four years,” while U.S. gas prices hit “a four-year high of $4.30 a gallon, according to AAA.”

ABC News

The Economic Times later described how “Brent crude futures reached $126.41 per barrel, the highest since March 2022,” before prices “later settled at $114.01, down $4.02,” with WTI “closed at $105.07 after earlier reaching $110.93.”

CNBC said the national average for gasoline climbed to “$4.18” and described it as “the highest level since the began,” while ABC News put the average gallon at “$4.17” and said it marked “the highest level in four years.”

Multiple outlets tied the price moves to the Strait of Hormuz and the blockade dynamic, with NBC News saying the surge came as a “dual blockade by the United States and Iran of the Strait of Hormuz” tightened the key shipping chokepoint.

The Guardian similarly linked the gas-price milestone to “Hormuz fears drive oil surge,” noting that the transit chokepoint carries “20% of the world’s oil.”

In parallel, the Economic Times reported that “Shipping traffic through the Strait of Hormuz dropped sharply,” with “Only seven ships crossed in 24 hours,” compared with “125 to 140 vessels travelled daily” before the war.

As markets reacted, diplomacy and threats around the Strait of Hormuz remained unresolved, and outlets described competing signals from Washington and Tehran.

Scripps News said President Donald Trump “has hinted on social media in recent days that conversations are happening,” but added “there are no plans for a formal meeting in Pakistan in the coming days,” and noted that “Trump canceled his envoy from going to the Middle East late last week.”

Al Jazeera

The Guardian reported that Trump told aides to prepare for a “long blockade to throttle Iran’s economy by blocking Iranian oil shipments,” and quoted Trump saying, “The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig.”

It also described Trump’s Truth Social claim that Iran had informed the administration it was in a “State of Collapse,” quoting Trump: “They want us to ‘Open the Hormuz Strait,’ as soon as possible, as they try to figure out their leadership situation.”

CBS News quoted Patrick De Haan saying, “The Strait [of Hormuz] is not reopened — there's no cohesive plan for reopening it — and now negotiations have been basically stopped,” while CNBC described the same broader picture as “negotiations appear to have lost momentum in recent days.”

On the Iranian side, Scripps News reported that Iran’s Supreme Leader issued a written statement read on Iranian state television saying, “The only place Americans belong in the Persian Gulf is at the bottom.”

The Economic Times said “Iran also reasserted control over the Strait of Hormuz,” and TechStock² described Tehran’s stance through a senior Revolutionary Guards figure warning of “long and painful strikes” on U.S. targets if attacks restart.

Beyond the immediate price spike, the sources described how U.S. stockpiles and shipping flows were being stressed, and how volatility was showing up in both crude benchmarks and fuel at the pump.

“The average cost of a gallon of gasoline hit $4”

CBS News

The Economic Times reported that “The Strategic Petroleum Reserve fell by 7.12 million barrels in one week,” calling it “the largest weekly drawdown since October 2022,” and said “Total SPR reserves fell by 17 million barrels over five weeks,” with the level “now stands at 398 million barrels.”

TechStock² added that the administration announced plans to “loan as much as 92.5 million barrels from the Strategic Petroleum Reserve—the U.S.’s emergency crude stash—to energy firms,” framing it as part of an International Energy Agency push to put “roughly 400 million barrels onto the market.”

The Economic Times also described how “Prices surged earlier but later eased during trading,” and said “Large sell orders and contract expiries contributed to price swings,” while “Hedge funds also sold positions to lock in gains.”

It further said the U.S. dollar weakened against the yen after Japan warnings about possible intervention, and that “Currency movements also pressured oil prices.”

In parallel, the Economic Times quantified the shipping disruption, saying “Only seven ships crossed in 24 hours,” while “Before the war, 125 to 140 vessels travelled daily,” and it tied the strait closure to supply fears driving “a fourth month of gains.”

The Economic Times also reported that “Brent prices have doubled since the conflict began,” and that “about one-fifth of global oil passes through this route,” reinforcing why the Strait of Hormuz remained central to the market’s swings.

As fuel costs rose, outlets described both regional price extremes and political disputes over whether prices were falling or rising.

CNBC reported that “California gasoline prices hit $6 per gallon on Thursday” in its broader coverage of fuel costs, and Scripps News said Michigan’s statewide average was “$4.58 a gallon” and Ohio’s was “$4.46 a gallon,” with “one station in Detroit at $6 a gallon.”

CNBC

NewsNation described a wide range of prices, saying “California has the highest average gas price in the nation at $5.97 per gallon,” while “Oklahoma has the cheapest gas at $3.57,” and it added that “In rural Mono County, drivers are paying nearly $7 a gallon.”

The Courier-Journal focused on Louisville, reporting that “the city’s average at $4.138 as of April 30,” and said “the national average gas price was $4.30 per gallon on April 30.”

On the political front, mezha.net framed the issue as a Republican liability, quoting Senator Tim Scott saying, “Gas prices are continuing to fall,” and juxtaposing that with AAA data showing the national average at “$4.30 per gallon.”

The same source quoted Defense Secretary Pete Hegseth saying, “It depends on where you live. If you live in California, it’s eight dollars,” and it cited AAA figures that the California average was “$4.64 per gallon.”

For household impact, CBS News said Americans had spent “$150 more on gas than they would have if it stayed below $3 a gallon,” and it quoted Stanford economics professor Neale Mahoney predicting “Americans will have spent roughly $800 more on gas than they would have if prices followed their pre-war trajectory.”

Looking ahead, the sources described both policy responses and uncertainty about how quickly prices could ease, even if shipping flows resumed.

“Misleading statements by prominent Republicans about rising gasoline prices have amplified public frustration, creating a tangible political liability ahead of the 2026 midterms”

mezha.net

Scripps News said economists warned that “the disruption could trigger a global recession if it extends into the second half of the year,” and it reported that Federal Reserve Chairman Jerome Powell told Washington, “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook.”

mezha.net

CBS News described a longer timeline for consumer relief, quoting Neale Mahoney that “gas prices will remain above $4 over the summer and then start to come down in the fall,” and it added that “even if the war ends and traffic resumes through the Strait of Hormuz, economists predict consumers will likely be stuck with elevated gas prices for the remainder of the year.”

NewsNation similarly said “Sustained price relief will depend on how quickly normal shipping flows resume through the Strait of Hormuz,” and it added that “even then, it may take several months.”

On the policy side, Scripps News reported that Secretary of Defense Pete Hegseth was expected to testify and that the military cost of the war had reached “$25 billion,” roughly “$400 million a day,” while TechStock² said the administration planned to loan “92.5 million barrels” from the Strategic Petroleum Reserve.

The Guardian added that the UAE announced plans to leave Opec after “nearly 60 years,” and it framed that as a “win for Trump,” while also describing fuel-price risks for airlines, including Willie Walsh warning, “I think Covid was on a completely different scale. What we’re seeing here is, in effect, a cost issue for the airlines.”

Finally, the Economic Times reported that the UN World Food Program estimates “45 million more people could face hunger if the conflict continues,” and it said global food insecurity could reach “363 million people,” linking the energy shock to broader consequences.