US Gas Prices Hit 4-Year High at $4.56/Gallon — Strait of Hormuz Crisis Blamed
American drivers faced the highest Memorial Day gas prices in four years as the Strait of Hormuz crisis pushed crude oil above $100 per barrel. The national average for a gallon of regular gasoline reached $4.56, according to AAA — up $1.38 compared to the same time last year.
The Hormuz Factor
The Strait of Hormuz, a narrow waterway between Iran and Oman, is the world's most important oil chokepoint. About 20% of global oil and LNG trade passes through it daily. The ongoing US-Iran conflict has raised fears of a prolonged closure, keeping energy markets volatile since March 2026.
US gasoline futures have surged to a 4-year high, with California alone seeing prices above $6.00 per gallon. The West Coast average is between $5.00 and $6.00.
Impact on Pakistan Petrol Prices
Pakistan imports most of its oil from Saudi Arabia and UAE — both through or near the Strait of Hormuz. The current petrol price in Pakistan is Rs. 403.78/litre, revised upward by Rs. 55/litre in March 2026 when crude oil surged.
If oil remains above $100/barrel, the next OGRA revision (due in early June) could bring further increases. Pakistan's fuel prices are also sensitive to the USD/PKR exchange rate.
India and UAE Fuel Prices
India, which also imports heavily from the Middle East, is seeing petrol at approximately ₹94.77/litre. The Indian government has so far absorbed some of the cost through reduced taxes, but another revision may be coming.
UAE petrol prices, being government-subsidized and pegged to Brent crude, are currently at AED 2.89/litre — considerably lower than most countries despite the regional crisis.
When Will Prices Drop?
Analysts say fuel prices will only stabilize once there is a credible peace agreement or ceasefire in the US-Iran conflict. Reports of an informal draft deal briefly sent futures lower, but no final agreement has been reached. Russia's potential diesel export restrictions add further uncertainty to global fuel supply.