US Diesel Tops $5 Per Gallon as Strait of Hormuz Crisis Continues

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Gas prices are surging across the US as the war with Iran continues to rattle global energy markets, with crude oil spiking 4% and American diesel topping $5 a gallon. Brent crude rose as high as $103 a barrel as US allies rebuffed President Trump's demands to help surmount Iran's blockade of the vital Strait of Hormuz, which saw the transport of 20% of the world's oil supply before the war.

Why it matters

The tumult has stemmed from a global energy squeeze, as attacks and uncertainty around the Strait of Hormuz have slashed tanker traffic and left markets scrambling for alternatives. Even though the US is a major oil producer, domestic gasoline prices track global crude - meaning turmoil overseas is hitting American drivers almost immediately.

The details

Regular gas in the States now costs about $3.80 per gallon - 80 cents higher than a month ago. While oil markets have been rocked, major stock indexes have avoided a major selloff. The Dow Jones Industrial Average has slipped less than 3% since the Feb. 28 start of the war, while the S&P 500 is down by the same percent and the Nasdaq is little changed.

• On February 28, the war with Iran began.
• As of March 17, 2026, US diesel has topped $5 per gallon.

What’s next

As long as Gulf exports remain constrained and infrastructure stays at risk, oil and gasoline prices appear likely to remain elevated. Some forecasts suggest national gas prices could approach $4 a gallon if disruptions persist or worsen.