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Gas $4/Gallon as Brent Climbs to $91, Strait Closed

7/20/2026

49 6 Full Breakdown

Summary

Story summary

Drivers faced a gasoline price of $4 per gallon on Monday, the second time since the Iran-Houthi conflict began.
Brent crude rose 3.2% to $90.95 while the American Automobile Association reported Indiana at $3.35 and California at $5.49 per gallon.
Analyst Tom Kloza warned gasoline futures could add 10 to 25 cents because of the strait closure and Ukraine’s attacks on Russian refineries, keeping demand high through Labor Day.

History

Historical Context

The 1973 Arab oil embargo, announced by OAPEC in October 1973 after the United States resumed arms shipments to Israel, led Saudi Arabia and other Arab producers to cut output and lift the posted price from $3 to $12 per barrel—a near-300% rise that lasted until March 1974. The shock forced policymakers to build reserves and adopt demand-side reforms still cited amid today’s gasoline surge.

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Story summary

Drivers faced a gasoline price of $4 per gallon on Monday, the second time since the Iran-Houthi conflict began.
Brent crude rose 3.2% to $90.95 while the American Automobile Association reported Indiana at $3.35 and California at $5.49 per gallon.
Analyst Tom Kloza warned gasoline futures could add 10 to 25 cents because of the strait closure and Ukraine’s attacks on Russian refineries, keeping demand high through Labor Day.

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