Strait Closure Sparks Fuel Price Spike
U.S. gasoline prices reached $4.46 per gallon, and oil futures rose due to the continued closure of the Strait of Hormuz, despite a U.S. plan to guide vessels.
Atlas Newsdesk ·
Fuel Prices Surge Amid Strait Closure U.S. national average gasoline prices rose to $4.46 per gallon on Monday, May 4, 2026, as oil futures increased following three days of declines, driven by the ongoing closure of the Strait of Hormuz.
U.S. crude oil futures climbed over 4% to more than $105 per barrel, while international Brent crude oil futures increased 5% to exceed $114 per barrel. Wholesale gasoline prices also saw a 4% jump. Since the conflict began in late February, the national average price of unleaded gasoline has risen 49%, leading to an estimated additional $1 billion per day in fuel costs for U.S. consumers.
The price increases occurred despite President Donald Trump's announcement of "Project Freedom," a plan to guide commercial vessels through the Strait of Hormuz, which typically handles over 20% of global oil supplies. Shipping companies and insurers, however, indicated that the plan lacked the necessary naval escort details to resume transits.
As of Monday, the shipping industry had not received specific guidance, and major shipping lines maintained their risk assessments, keeping the strait closed for their vessels. Insurers also reported that a U.S.
government program designed to cover ships near the strait had not yet resulted in any policies due to perceived high risks.