Memorial Day Gas Prices Surge

Memorial Day travel will be costly for Americans this year. The nationwide average gas price reached $4.507 per gallon on Monday, based on American Automobile Association (AAA) data. This marks a slight decrease from the previous day and week, yet it’s $1.50 higher than late February levels. The U.S., alongside Israel, began joint strikes on Iran, sparking an ongoing Middle East conflict.

California drivers faced the highest costs, with a statewide average of $6.12 per gallon. It remains the only state with prices over $6, but Hawaii and Washington have nearly reached this threshold, at $5.64 and $5.77 per gallon, respectively. Since February 28, when the Iran conflict began, all states have reported gas price increases. Mississippi holds the lowest gas prices at $3.97 per gallon, up from $3.69 a month ago and $2.65 a year ago.

Impact on American Drivers

The Iran conflict has disrupted oil production and supply, particularly affecting the Strait of Hormuz. These disruptions led to an increase in crude oil prices globally, resulting in higher gas prices.

This surge contrasts a previous downward trend celebrated by the White House as significant wins for Americans during Trump’s administration in January, when gas prices reached historic lows.

Patrick De Haan from GasBuddy predicted gas prices between $2.99 and $3.23 per gallon by this time in December. However, after the U.S. attacked Iran, the national average hit $4.547 per gallon. Prices will remain high until the Strait of Hormuz is reopened.

The elevated gas and diesel prices have cost American drivers millions. Those traveling for Memorial Day will face the brunt of these increases, spending $2 billion more on gasoline over the holiday weekend compared to last year. GasBuddy estimates this equates to $22 million more each hour.

Higher prices impacted millions during the long weekend. AAA estimated 45 million Americans planned Memorial Weekend trips at least 50 miles from home between May 21 and May 25, somewhat more than last year’s 44.8 million travelers. Of these, 39.1 million expected to travel by car. Last year, the average gas price on Memorial Day was $3.17. This year, it surpasses $4, the highest since summer 2022, during Joe Biden’s presidency amid criticism for inflation.

Gas price hikes now pressure the Trump administration, with his approval rating dropping to its lowest during his second term. A Reuters/Ipsos poll shows only 35 percent of Americans approved of Trump’s performance.

Signs of Relief

Despite reaching levels not seen in years, gas prices moderately fell across the country on Monday. This may be related to optimism over the U.S. and Iran reportedly agreeing on a deal to fully reopen the Strait of Hormuz, as shared by a senior U.S. official with Reuters.

Details remain unclear, with no set timeline for reopening. Trump stated on Truth Social that the deal is not fully negotiated yet, but he promised a favorable outcome.

De Haan addressed dropping gas prices with caution. Until a formal agreement is signed and ships transit the Strait, gas prices will likely stay above $4 per gallon. Confidence and ship movement are needed for a significant price drop.