economy
Gas prices could soon breach $5 a gallon if Strait of Hormuz remains shut, J.P. Morgan analysts say
April 7, 2026 / 12:33 PM EDT / CBS News
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.