Trump Speech Sends US Fuel Prices Soaring Ahead of Summer Travel

Consumers face record gasoline and diesel prices as Iran conflict escalates.

Apr. 2, 2026 at 5:36pm

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President Donald Trump's address to the nation on Wednesday, in which he vowed more aggressive strikes on Iran, has put U.S. consumers on course for record fuel prices at the pumps just ahead of the country's peak summer travel season, according to market experts. U.S. crude oil prices surged more than 10% on Thursday, and U.S. average retail gasoline prices are now set to climb to between $4.25 and $4.45 a gallon by next week after crossing $4 a gallon for the first time since 2022. Diesel prices, less visible to consumers but more impactful as they are directly tied to the cost of making and moving goods, could hit a record high within two weeks, rising from $5.47 a gallon on Thursday to between $5.80 and over $6 a gallon.

Why it matters

The escalating conflict with Iran and the resulting disruption to global oil supply has put immense pressure on U.S. fuel prices, which will significantly impact consumer budgets and the broader economy just as the summer travel season begins. High gasoline and diesel prices will squeeze household budgets, reduce discretionary spending, and drive up the costs of goods and services across the board.

The details

Trump's comments sent U.S. crude oil prices surging more than 10% on Thursday. This has led to a rapid rise in U.S. average retail gasoline prices, which are now set to climb to between $4.25 and $4.45 a gallon by next week after crossing $4 a gallon for the first time since 2022. Wholesale markets have also seen significant increases, with midmorning hikes of 17 cents a gallon in the Great Lakes, Great Plains, Northeast and West Coast markets, and a 19-cent-a gallon increase in the Gulf Coast. Meanwhile, diesel prices, which are less visible to consumers but more impactful as they are directly tied to the cost of making and moving goods, could hit a record high within two weeks, rising from $5.47 a gallon on Thursday to between $5.80 and over $6 a gallon.

  • On Wednesday, President Trump vowed more aggressive strikes on Iran in a national address.
  • On Thursday, U.S. crude oil prices surged more than 10% in response to Trump's comments.
  • U.S. average retail gasoline prices are set to climb to between $4.25 and $4.45 a gallon by next week.

The players

Donald Trump

The President of the United States who vowed more aggressive strikes on Iran in a national address, sending fuel prices soaring.

Patrick De Haan

A market expert who said that if there is no viable plan to reopen the Strait of Hormuz, the U.S. average price of gasoline will likely cross $5 a gallon and hit record levels within a month.

Tom Kloza

The chief energy adviser to Gulf Oil who reported midmorning wholesale price increases of 17 cents a gallon in several regions and a 19-cent-a gallon hike in the Gulf Coast.

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What they’re saying

“If there is no viable plan to reopen the Strait of Hormuz, the U.S. average price of gasoline will likely cross $5 a gallon and hit record levels within a month.”

— Patrick De Haan, Market Expert

“Wholesale markets had begun moving higher on Thursday, with midmorning increases of 17 cents a gallon in the Great Lakes, Great Plains, Northeast and West Coast markets, and a 19-cent-a gallon hike in the Gulf Coast.”

— Tom Kloza, Chief Energy Adviser, Gulf Oil

What’s next

Analysts will be closely monitoring the situation in the Strait of Hormuz and any developments in the conflict with Iran that could further impact fuel prices. Consumers will need to brace for potentially record-high gasoline and diesel prices in the coming weeks, which could significantly strain household budgets and the broader economy.

The takeaway

The escalating conflict with Iran has put immense pressure on U.S. fuel prices, which will have far-reaching consequences for consumers and the economy. This highlights the vulnerability of the U.S. energy system to geopolitical tensions and the need for a more diverse and resilient energy infrastructure to mitigate the impact of such disruptions.