Your jaunt to the beach on Memorial Day will cost you.
The current national average for regular gas is $4.51, the highest it's been since 2022, when Russia launched its full-scale invasion of Ukraine, causing a spike in oil prices.
The current price of gas is 4 cents higher than a month ago and $1.32 higher than the same time last year. As of Sunday, California has the highest average at $6.11, while Indiana has the lowest at $3.93.
Memorial Day marks the unofficial start of summer, and millions of Americans will travel to cookouts, parties, and vacation destinations to celebrate. AAA projects almost 40 million people will drive at least 50 miles from home between Thursday and Monday.
That'll now cost over $200 in most states.
"Travel demand remains strong, and despite higher fuel prices, many people are prioritizing leisure travel during holiday breaks," Stacey Barber, vice president of AAA Travel, said in a statement.
This summer's escalating prices are largely due to the US and Israel's war on Iran. Iran all but closed the Strait of Hormuz — a waterway through which around 20% of the world's oil supply and liquefied natural gas pass through — following those initial attacks. As a result, oil and gas prices have spiked worldwide, forcing some countries to enact energy-saving measures.
President Donald Trump said on Saturday that a deal between the US and Iran to reopen the Strait of Hormuz is "largely negotiated."
"Final aspects and details of the Deal are currently being discussed, and will be announced shortly," Trump wrote in a Truth Social post. "In addition to many other elements of the Agreement, the Strait of Hormuz will be opened."
Trump's comments sent oil prices sharply lower at the start of the week, with crude futures falling sharply.
International benchmark Brent crude fell 5.7% to $97.66 a barrel as of 12:55 a.m. on Monday, while US West Texas Intermediate crude dropped 5.9% to $90.91 a barrel.
While oil futures reacted immediately to Trump's statements, drivers may not see relief at the pump right away. Retail gasoline prices generally trail moves in crude oil prices because fuel purchased at earlier, higher wholesale costs can take time to work through the supply chain.
Markets are also likely to remain volatile, with oil continuing to swing on geopolitical headlines tied to the conflict in Iran, analysts said.
In another post on Sunday, Trump said he's in no rush to strike a deal. "Both sides must take their time and get it right. There can be no mistakes!" he wrote.
"We've been at this stage before, only for talks to break down. Therefore, the market will likely be more cautious about overreacting to these headlines," wrote Warren Patterson, the head of commodity strategy at ING, on Monday.
