- 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.
- ”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,” Patrick De Haan, head of petroleum analysis at GasBuddy, said.
- 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.
- 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.
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