US Fuel Costs Spike as Strait of Hormuz Remains Closed Amid Iran Conflict

US fuel prices are experiencing a sharp upward trajectory as the geopolitical conflict involving the US, Israel, and Iran intensifies. The failure to reopen the Strait of Hormuz, one of the world's most vital oil export arteries, has triggered a significant price shock at the pump across the country. The current price action reflects the market's realization that supply disruptions are likely to persist. This follows a brief period of price stabilization based on hopes for a ceasefire, which have now been extinguished as it became clear that the corridor would remain closed. In California, gasoline averages have hit $6.01 per gallon, representing a 30% increase since the conflict began on February 28. Diesel prices in the state have seen an even steeper climb, rising 47% to an average of $7.50 per gallon since the outbreak of war. The impact is felt nationwide, with the US average price for gasoline jumping 27 cents in a single week to $4.30 per gallon, up from $4.03. This rapid increase underscores the sensitivity of domestic prices to Middle Eastern instability. The surge in diesel costs is particularly concerning for the broader economy, as the fuel is essential for the trucks and trains that maintain the domestic supply chain. Continued volatility in energy markets is expected as long as the Strait of Hormuz remains impassable.