Gasoline prices in the United States are expected to remain volatile heading into Memorial Day weekend, with the national average standing at $4.47 per gallon as of May 18, despite a slight recent decrease. The primary driver of this volatility is the ongoing geopolitical tension between the US and Iran, particularly concerning the Strait of Hormuz, a critical chokepoint for global oil transportation.
Expert Analysis on Price Fluctuations
Patrick De Haan, head of petroleum analysis at GasBuddy, commented on the situation: "Gasoline and diesel prices are likely to remain volatile, and with Memorial Day approaching, any sustained increase in oil prices could begin pushing retail fuel prices higher again in the weeks ahead." De Haan highlighted how sensitive oil markets are to shifting geopolitics, citing how they responded to President Donald Trump's meeting with Chinese President Xi Jinping as an example.
Geopolitical Tensions Drive Uncertainty
Negotiations between the US administration and Iran aimed at de-escalating tensions and securing a peace deal have failed, resulting in an impasse and significant uncertainty regarding the future accessibility of the Strait of Hormuz. This uncertainty continues to influence oil prices, which had been steadily declining since the beginning of May but spiked last week.
Though gas prices dropped by a cent last week, experts warn another spike could be coming ahead of Memorial Day, potentially impacting travel plans for millions of Americans.
