Escalating military risks in the Strait of Hormuz lift crude above $100, pushing US gasoline to a four-year high ahead of Memorial Day.
Oil prices surged above $100 per barrel as military tensions with Iran intensified, driving the national average gasoline price to $4.53 a gallon. The increase marks a sharp rise from $3.20 a year ago and adds pressure on consumers already facing high inflation and borrowing costs.
The Strait of Hormuz, which handles 20% of global oil supply, remains a flashpoint amid reports of planned military strikes. Airlines, retailers, and manufacturers are absorbing higher energy costs, while households face elevated fuel expenses during peak travel season.
Markets reacted with volatility as investors weighed the potential for prolonged supply disruptions. The timing coincides with Memorial Day weekend, traditionally a high-demand period for fuel.