Gas prices stubbornly high as gulf tensions prolong price squeeze

Gas prices remain stubbornly elevated in 2026, up about 45% year-to-date and averaging around $4.10 per gallon in August with diesel near $5.50, driven not by demand but by the Persian Gulf conflict and Strait of Hormuz disruptions. Iran–US tensions and threats of sanctions keep supply tight and prices volatile, while energy stocks rise even as broader markets wobble. No negotiations to end the hostilities are in sight, keeping the price squeeze in place for now.