Americans brace for costly summer travel as Iran crisis drives fuel prices higher

Americans heading out for the Memorial Day holiday weekend are facing a sharp rise in fuel costs as the ongoing conflict involving Iran continues to disrupt global oil supplies, setting the stage for what analysts warn could become one of the most expensive summer travel seasons in recent years. Despite soaring gasoline prices, travel demand across the United States remains strong. According to projections from the American Automobile Association (AAA), nearly 39.1 million people are expected to travel by car during the long weekend, while another 3.66 million are likely to fly. The holiday traditionally marks the beginning of the summer travel season in the US. Read Full Story However, the enthusiasm for road trips is increasingly being overshadowed by growing costs at the pump. Retail gasoline prices in the US have climbed by more than $1.50 per gallon since late February, when military tensions in the Middle East escalated following strikes involving the United States and Israel against Iran. The conflict has severely disrupted shipping routes through the Strait of Hormuz — one of the world’s most critical oil transit corridors, through which nearly one-fifth of global oil supplies pass. The resulting supply uncertainty has pushed crude oil prices sharply higher, feeding into rising fuel and transportation costs across the American economy. The surge in energy prices is also creating political pressure for Donald Trump, as households across the country struggle with the increasing burden of fuel expenses. Several US states are already considering temporary suspensions of gasoline taxes to provide relief to consumers, while discussions have also intensified around reducing the federal fuel tax. Industry analysts warn that the pressure on consumers may only grow worse in the coming months. Speaking to Reuters, Patrick De Haan, head of petroleum analysis at GasBuddy, described the current market as one of the most volatile fuel environments in years, saying the disruption in the Strait of Hormuz was now at the center of global energy concerns. He warned that even if shipping through the waterway resumes normally, fuel prices may take months — or even longer — to stabilise completely. The impact is already changing travel behaviour among Americans. According to Reuters, a recent GasBuddy survey found that fewer Americans are planning long-distance summer road trips this year. Only 56 percent of respondents said they intended to drive more than two hours during the summer, compared to 69 percent last year. Rising fuel prices have emerged as the biggest factor influencing travel plans, with many travellers cutting back on vacation distances and frequency. At the same time, experts are increasingly concerned about shrinking gasoline inventories in the US. Energy analysts point out that gasoline storage levels have been falling steadily for weeks, even as demand remains relatively strong heading into peak driving season. Additional risks — including refinery outages, tightening global fuel supplies and the approaching Atlantic hurricane season — could put even more upward pressure on prices. According to fresh industry forecasts, the national average price of gasoline this Memorial Day weekend could be$1.48 higher than the same period last year. Some analysts have warned that if disruptions in the Strait of Hormuz continue through the summer, fuel prices in parts of the US could climb beyond $5 per gallon. The combination of geopolitical tensions, tightening fuel supplies and strong seasonal demand is now raising fears that American consumers may face a prolonged period of elevated energy costs well beyond the holiday weekend. Ends With inputs from Reuters