Will gas in WA hit $8? Why the Strait of Hormuz blockade is costing you more
Americans spend $15 billion more on gas due to war in Iran
GasBuddy estimates that Americans have spent $15 billion more on gas due to the war in Iran. Now with a ceasefire in place, the question is when can we see gas prices go down?
Stalled peace negotiations and a ceasefire extension with no end date between the U.S. and Iran have left a critical global energy choke point in gridlock.
By the numbers:
As a U.S. blockade remains in the Strait of Hormuz and Iran continues to toll oil tankers, analysts warn that the economic toll is mounting. GasBuddy estimates that the conflict is costing Americans an additional $300 million every day, and could potentially drive West Coast gasoline prices as high as $8 a gallon this summer.
Cascading effects on summer travel
The situation has reached a critical juncture for the aviation and automotive sectors. Patrick De Haan, head of petroleum analysis at GasBuddy, warns that the disruption is no longer just a distant geopolitical issue.
What they're saying:
"We’re starting to see cascading effects," De Haan said. "Jet fuel prices this summer are likely extremely elevated. We’re seeing airlines cancel flights into the West Coast because of the jet fuel situation that is worsening here."
For motorists, the outlook is equally grim. De Haan described the current climate as an "absolutely unpredictable time" for those making summer road trip plans. He noted that gasoline prices could range from $4.50 to as high as $7 or $8 a gallon.
The global refining loophole
While the U.S. directly imports less than 10% of its oil through the Strait of Hormuz, the region’s impact is amplified by the global nature of oil refining.
"We don’t get much oil from the Strait of Hormuz, but the countries you rely on for jet fuel, diesel and gasoline to make ends meet do," De Haan said.
These secondary countries rely on crude from the Strait to produce the refined products they sell to the U.S. With an estimated 800 million barrels of oil lost to the closure and 90 million barrels blocked in the Strait last week alone, the global supply chain is tightening.
West Coast vulnerability
The West Coast is particularly susceptible to these shocks. The region recently lost two California refineries, leaving it with lower local supplies of gasoline, diesel and jet fuel.
While De Haan noted that widespread gasoline disruptions or "dry pumps" are unlikely for consumers in the U.S., the financial impact will be severe. High-demand hubs like Seattle, Portland and San Francisco are expected to see extraordinarily high prices in the weeks ahead, potentially upending travel plans abroad and across the coast.
A "Band-Aid on a gaping wound"
Questions have been raised regarding whether the U.S. Strategic Petroleum Reserve (SPR) can mitigate the rising costs. De Haan remains skeptical, noting that the volume of oil available in the reserve pales in comparison to the scale of the Strait's disruption.
Last week, 90 million barrels were blocked in the Strait, while the U.S. released only 4 million barrels from the reserve.
"The SPR release is akin to putting a Band-Aid on a gaping wound," De Haan said. "It will not really help much at all."
De Haan says Americans are spending $300 million more dollars a day because of the war.
With peace talks currently collapsing, experts warn that prices will remain elevated even if the Strait were to reopen tomorrow due to the massive volume of oil already lost to the market.
The Source: Information in this story comes from GasBuddy and original reporting by FOX 13 Seattle.
MORE NEWS FROM FOX 13 SEATTLE
Fircrest veteran says he was scammed of $28K from 'veteran-owned' business
Sedro-Woolley family loses home, pets in fire, community steps in to help
Lime 'devastated' by Seattle crash critically injuring 2 riders
Washington wolf population hits record high in 2025
Starbucks announces its corporate office expansion in Nashville, TN
To get the best local news, weather and sports in Seattle for free, sign up for the daily FOX Seattle Newsletter.
Download the free FOX LOCAL app for mobile in the Apple App Store or Google Play Store for live Seattle news, top stories, weather updates and more local and national news.