Gas Prices Hit 4-Year High as Summer Energy Costs Surge
American households are facing a punishing one-two punch of rising energy costs as the Memorial Day weekend begins: the national average price for a gallon of gasoline has surged to $4.55, a four-year high, while electricity prices are climbing faster than inflation and projected to push summer cooling bills to their highest level in over a decade.
According to AAA, a record 45 million Americans are expected to travel over the holiday weekend, with 39.1 million hitting the road by car despite the elevated prices. All 50 states now have average gas prices above $4 per gallon, according to AAA data, with California leading the nation at over $6 per gallon.
The Iran War Connection
The primary driver of the price surge is the ongoing U.S.-Iran war and the resulting closure of the Strait of Hormuz. Gasoline prices have jumped approximately $1.50 a gallon since the U.S. launched airstrikes against Iran on February 28, 2026, NPR reports.
The 2026 Strait of Hormuz crisis — the largest disruption to world energy supply since the 1970s — has effectively blocked the passageway through which roughly 25% of the world’s seaborne oil trade and 20% of liquefied natural gas once flowed. Brent crude oil surpassed $100 per barrel on March 8 for the first time in four years, peaking at $126 per barrel.
Regional price differences are stark. The U.S. Energy Information Administration reports that as of May 18, gas prices averaged $4.40 per gallon in the Midwest (up 45% year-over-year), $4.59 in the Rocky Mountain region (up 47%), $5.61 on the West Coast (up 31%), $3.95 on the Gulf Coast (up 42%), and $4.31 on the East Coast (up 44%). Refinery outages and maintenance in the Midwest and Rocky Mountain regions have exacerbated local price spikes.
Summer Electric Bills Set to Sizzle
Compounding the pain at the pump, electricity prices are rising faster than overall inflation — up more than 6% in the last year and 39% over the last five years, according to NPR. The National Energy Assistance Directors Association (NEADA) projects that summer electricity bills will be 8.5% higher than last year, with the average cost of home cooling reaching $778 — a 12-year high.
“Climate scientists think this could be the hottest summer on record or at least close to it,” Mark Wolfe, who heads NEADA, told NPR. “So families need to use more of an increasingly expensive product to stay cool this summer. And that’s going to be tough.”
The rising electricity costs are driven by higher natural gas prices linked to global energy markets, grid infrastructure rebuilding costs, and growing demand from data centers — trends that predate the war but have been accelerated by it.
Squeezed Households
For many American families, the dual energy shock is forcing difficult tradeoffs. Robin Westphal, a third-grade math teacher living near Houston, told NPR her summer air-conditioning bills topped $300 a month last year. “We might not be able to spend as much at the grocery store,” she said. “Maybe not going out to eat. Limiting our extra activities.”
In northwest Arkansas, seminary student Matthew Kolb has taken to donating plasma twice a week to help cover his bills, which include about $250 a month for electricity. “Higher utilities in the summer always stretches us a little bit and makes budgeting a little more of a complicated feat,” he told NPR.
Every year, some 13 million U.S. customers fall so far behind on utility bills that their power is temporarily cut off. The federal Low Income Home Energy Assistance Program (LIHEAP), which helps about 6 million Americans, has seen its funding flat for three years, and the Trump administration has proposed eliminating it entirely in the 2027 budget.
Political Fallout
The energy crisis is taking a political toll on President Trump. An NPR/PBS News/Marist poll found that 63% of Americans — roughly 6 in 10 — hold the president responsible for higher gasoline prices. A Fox News poll showed Trump’s economic approval falling to 29%, with 58% of voters citing cost of living as their top worry.
The administration has deployed several measures to mitigate prices, including releasing crude oil from the Strategic Petroleum Reserve, allowing nationwide sales of E15 gasoline, issuing Jones Act waivers, and relaxing summer-grade gasoline standards. But with the Strait of Hormuz effectively closed and the ceasefire fragile, analysts see little immediate relief on the horizon.
What to Watch
The trajectory of energy prices hinges on whether the Strait of Hormuz can be reopened. A temporary ceasefire in April failed to restore normal shipping, and Iran has been charging tolls of over $1 million per ship for passage. President Trump launched Operation Project Freedom on May 4 to escort merchant ships through the strait but paused it two days later, citing progress toward a possible agreement.
With climate scientists predicting a record-hot summer and no resolution to the geopolitical crisis in sight, American households face the prospect of sustained energy pain through the months ahead.