U.S. consumers are expected to continue paying high prices for gasoline and diesel through the summer travel season, even after President Donald Trump announced a two-week ceasefire in the U.S.-Israeli war involving Iran.
The conflict, including Iran’s blockade of the Strait of Hormuz, has pushed fuel prices to multi-year highs, causing economic strain and low approval ratings for Trump.
Even though crude oil futures fell nearly $20 after the ceasefire announcement, experts warn retail prices will not drop quickly. Uncertainty remains as fighting continues in Lebanon and Saudi pipelines are attacked, keeping the Hormuz waterway effectively closed.
Shon Hiatt of USC’s Marshall School of Business said: “Prices go up like a rocket, and they fall like a feather.” Retail gasoline is currently $4.16 per gallon, slightly down from Tuesday’s near four-year high of $4.17, but still almost $1 higher than last year.
Diesel prices continue to climb, reaching $5.67 per gallon, the highest since July 2022—nearly 60% higher than last year. Analysts note that geopolitical risks and insurance costs for shipping through the Middle East will keep fuel prices elevated for the rest of 2026, particularly for diesel and jet fuel.
Key points:
- Ceasefire has not fully restored oil flow through Hormuz.
- Retail fuel prices fall slowly due to high inventory costs and uncertainty.
- Diesel and jet fuel remain especially tight due to Middle East supply dependence.
In short, despite the ceasefire, Americans should expect expensive gas and diesel for months.
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