As of May 3, Texas gas prices are averaging approximately $3.86 to $3.90 per gallon for regular unleaded, marking a significant increase of over $1 per gallon compared to the same period last year and 30 cents higher than last week according to AAA. Diesel prices are averaging $4.99 per gallon.
Prices are rising due to increased oil costs exceeding $100 per barrel, with the highest costs in West Texas and Dallas, and lower prices in the Panhandle.
Gas prices in the U.S. are the highest they have been since late July 2022, with average cost is $4.446 per gallon.
Prior to the Iran war, gas prices were an average of $2.98.
As of April and May, President Donald Trump has indicated low concern regarding rising gasoline prices, which spiked following the Iran war, stating 'if they rise, they rise' and arguing the military conflict is more important.
Trump has promised that when the war in Iran ends, saying that gas prices will 'drop like a rock.' Though he has said the war has ended, with the Strait of Hormuz blocked, he is continuing to attack some ships and gas prices are expected to remain high, according to experts.
ExxonMobil CEO Darren Woods warned that global oil markets face, or will soon face, significant supply shortages, with strategic reserves being depleted due to disruptions in the Strait of Hormuz. Woods indicated that while the initial impact was mitigated by oil in transit, prolonged closure of the strait will lead to higher oil prices and tighter supplies.
The research firm of ClearView Energy Partners reports that prices could go up higher the longer the strait is blocked.
According to ClearView, “When inventories are low and you can't get oil out of the ground or out of the strait, you should expect prices to keep rising at least until demand capitulates and starts to contract, So, we may be weeks or even months, depending on how long the strait stays closed, from the peak of prices from this crisis.'
Researchers say it could take months for ships trapped in the Strait of Hormuz to get through, damaged facilities to be repaired, and inventories to be replenished before gas prices return to what is considered normal. And even if gas prices were to fall fast and quickly, the reason would probably be a bad one, not a good one, referring to a recession that would undercut demand and damage the market.
Between the weeks of March 20 and April 24, the Department of Energy released 17.5 million barrels of crude oil from the U.S. Strategic Petroleum Reserve in an effort to curb high fuel prices stemming from the war, according to data from the U.S. Energy Information Administration.
Higher prices at the gas pump are also impacting Americans' wallets amid a weakened U.S. dollar. The U.S. dollar depreciated about 10% from early January 2025 to the end of April 2026 — with losses in the first half of 2025 being the biggest since 1973, according to an analysis by Morgan Stanley.
A weakened dollar could make it more expensive for Americans to travel abroad and increase the price of imported goods — while American exporters could see a financial boost, according to financial analysts.