Gas prices could soon breach $5 a gallon if Strait of Hormuz remains shut, J.P. Morgan analysts say

TL;DR

U.S. gasoline prices have increased by $1.16 per gallon since the start of the Iran war.
J.P. Morgan analysts predict gas prices could exceed $5 a gallon if the Strait of Hormuz remains closed through mid-April.
Higher gas prices could diminish the impact of tax refunds expected from the 2025 Republican-backed bill.
A 10¢ rise in average gasoline prices adds over $12 billion to annual consumer outlays.
The increase in gasoline prices is estimated to be a $100 billion hit to consumers' purchasing power if it persists.
Average national gas price was $4.14 per gallon as of Tuesday, up from $2.98 before the conflict.
Petroleum expert Patrick De Haan agrees that prices could surpass $5 a gallon by late April.
Ship transits through the Strait of Hormuz dropped from approximately 130 per day in February to six in March.
President Trump has threatened Iran with severe consequences if the strait is not reopened.

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