'It's just ridiculous': Americans react to gas prices

Energy prices are rising as US peace talks with Iran appear to have stalled, with the key Strait of Hormuz waterway still effectively closed.

Oil prices surged to their highest levels since the start of the Iran war, with Brent crude briefly exceeding $126 per barrel before retreating to around $114 per barrel Thursday morning. West Texas Intermediate stood at about $104 per barrel. This sharp spike is largely attributed to ongoing disruptions in the Persian Gulf, particularly concerns over prolonged instability in the Strait of Hormuz, a key chokepoint for global oil exports.

As the Iran war enters its third month, global oil prices have surged due to Iran’s closure of the Strait of Hormuz and a U.S. Navy blockade, drastically affecting global energy supplies. U.S. gasoline prices have jumped 44% to $4.30 per gallon, while diesel has risen to $5.50, increasing transportation and shipping costs. This has led to surcharges from shippers like USPS and Amazon, and is driving higher prices for consumer goods such as clothing, furniture, and cosmetics. Airlines are also grappling with elevated jet fuel prices, prompting fare hikes, increased baggage fees, and widespread flight cancellations. Household brands like Procter & Gamble and Unilever are warning of possible price increases due to more expensive petroleum-based materials. While grocery prices haven’t spiked yet, experts expect a lagged increase due to rising fuel and fertilizer costs, which are critical for food production. The U.N. warns that continued conflict could lead to food insecurity for 45 million more people, mainly in Asia and Africa, as transportation delays and higher costs reduce food affordability.

In the first quarter of 2026, BP reported a profit of $3.84 billion—more than double the previous year's figure—driven by a sharp rise in energy prices due to the ongoing war in Iran. The conflict has nearly closed the Strait of Hormuz, a key oil shipping route through which about 20% of global oil normally passes, escalating global fuel costs. Brent crude oil prices soared from $73 to over $104 per barrel following strikes on Iran by the U.S. and Israel. Simultaneously, U.S. gasoline prices climbed to a multiyear high of $4.18 per gallon, deeply affecting households and energy-sensitive industries like airlines, which have started canceling flights due to rising jet fuel prices. BP, benefiting from its expansive oil trading capabilities and integrated supply chain, surpassed analysts’ expectations and outperformed peers. The financial windfall sparked backlash, with environmental and consumer advocacy groups condemning energy companies for profiting in times of global hardship. BP's stock rose over 1% following the earnings report, a trend echoed by other major oil producers. Meanwhile, surging fuel costs have further contributed to inflation, significantly burdening middle- and lower-income families.