Memorial Day will bring financial challenges for Americans traveling across the nation. The American Automobile Association (AAA) reports that on Monday, the average gas price was $4.507 per gallon. Although down slightly from the previous day and week, this figure is $1.50 higher than late February. The increase followed joint U.S. and Israel strikes on Iran, sparking ongoing conflict in the Middle East.
California drivers face the highest costs, paying an average of $6.12 per gallon. It is the only state where prices have surpassed the $6 mark. Hawaii and Washington follow closely, with prices at $5.64 and $5.77 per gallon, respectively. Gas prices have risen in all states since the start of the Iran conflict on February 28. Mississippi drivers pay the least, with prices at $3.97 per gallon, up from $3.69 last month and $2.65 a year ago.
Impact on American Drivers
The Iran war has disrupted oil production and supply, especially with the Strait of Hormuz effectively closed. This disruption has pushed crude oil prices—and consequently gas prices—up worldwide. These increases overturned a falling trend in gas prices seen as a success by the White House in January.
Patrick De Haan, head of petroleum analysis at GasBuddy, remarked that they originally expected gas prices to average between $2.99 and $3.23 per gallon by this time of year. The conflict with Iran has now raised the national average to $4.547 per gallon, with prices likely staying high until the Strait reopens.
The surge in gas prices since the conflict began has cost American drivers significantly. Those traveling during Memorial Day will face higher expenses at the pump. GasBuddy estimates that Americans will spend $2 billion more on gasoline over the Memorial Day weekend compared to last year, amounting to roughly $22 million more every hour.
AAA estimated that 45 million Americans planned Memorial Day trips of at least 50 miles from home, slightly more than 44.8 million people last year. Out of these travelers, 39.1 million were expected to travel by car. Last year’s national average gas price on Memorial Day was $3.17; this year it has increased by over a dollar, marking the highest price since summer 2022.
Higher gas prices have pressured the Trump administration, with presidential approval ratings dropping to the lowest level in his second term. A Reuters/Ipsos poll showed approval at only 35 percent.
A Potential Relief
While gas prices remain high, they decreased slightly across the country on Monday. This drop coincides with reports of a potential U.S.-Iran deal to reopen the Strait of Hormuz. A senior U.S. official provided this to Reuters, though details and timelines remain uncertain.
President Trump commented on Truth Social, stating the deal is still under negotiation but promises a “good and proper” agreement. De Haan advised caution regarding falling gas prices, stating that until an agreement is finalized and ships resume transit, the national average will likely stay above $4 per gallon. Significant drops in prices will depend on the deal’s successful implementation and renewed shipping activities.