Gas prices in the United States are climbing again, and the reason goes far beyond local demand or seasonal travel. A jet fuel shortage in Europe is now affecting what Americans pay at the pump, showing how tightly connected the global oil system has become.
The oil market usually operates quietly in the background. Crude moves across oceans, refineries process fuel around the clock, and supplies reach consumers without much attention. Problems become visible only when one part of the chain fails. That is exactly what happened after the war with Iran disrupted global crude flows earlier this year.
The effects are now spreading across multiple fuel markets, especially gasoline and diesel in the United States.
Gas Prices Jumped Faster in the US
Between February 23 and April 27, gasoline prices in the United States increased faster than almost every country in the world. According to JPMorgan analysts, only Myanmar, Malaysia, Pakistan, and the Philippines saw steeper increases during that period. The US ranked fifth globally, just ahead of Cambodia.
Americans are now paying an average of $4.48 per gallon for regular gas. That is nearly 50% higher than prices before the conflict began.
The increase is not only tied to crude oil costs. Refinery decisions are also playing a major role.
Europe’s Jet Fuel Problem Changed Everything
Four weeks ago, the International Energy Agency warned that Europe had roughly six weeks of jet fuel reserves remaining. If the Strait of Hormuz stayed blocked, airlines would have to cut routes and reduce flights significantly.
Airlines responded quickly.
Lufthansa cut 20,000 flights. Turkish Airlines suspended flights to 23 cities. In the United States, United Airlines removed 5% of its summer schedule.
Europe relies heavily on Middle Eastern fuel supplies, especially for aviation. Once those supplies tightened, refiners in the United States shifted production toward jet fuel to meet global demand.
According to the US Energy Information Administration, American refineries increased jet fuel production by 26,000 barrels per day during the final week of April compared with the previous week.
That adjustment created another problem.
Refineries Had to Reduce Gasoline Output
US refineries are already operating near historic production highs. There is very little unused refining capacity available. Producing more jet fuel meant producing less gasoline.
Refiners reduced gasoline production by about 53,000 barrels per day. To keep stations supplied, the country tapped into fuel reserves aggressively. Gasoline inventories dropped by 6.1 million barrels during the last week of April alone.
As a result, gasoline stockpiles fell roughly 2% below the five-year average.
Diesel supplies look even tighter. Current stockpiles sit 11% below average levels.
The market reacted immediately. Wholesale gasoline prices have climbed 74 cents since the International Energy Agency issued its warning in mid-April. Retail gas prices surged more than 30 cents per gallon in a single week, marking the sharpest weekly increase since the Iran conflict began.
Diesel prices are also approaching record territory, sitting less than 16 cents below an all-time high.
Not All Crude Oil Works the Same Way
Oil prices have continued moving upward as traders remain uncertain about a negotiated resolution to the Iran conflict. Yet crude oil itself is not a uniform product.
Different regions produce different grades of crude, and each type works better for certain fuels.
Crude from Venezuela and the Middle East is known as heavy, sour crude. It has a thicker texture and works particularly well for diesel, jet fuel, and asphalt production.
American crude is mostly light, sweet crude. It is thinner and more suitable for gasoline production.
Although jet fuel and diesel can still be produced from light crude, the process is less efficient for many US refineries.
America’s Refinery System Faces a Mismatch
The structure of America’s refinery network explains why this issue has become so expensive.
Most US refineries were designed decades ago to process imported heavy crude from Latin America and the Middle East. The last major refinery built in the country opened in 1977, long before the shale boom transformed American oil production.
Over the last two decades, hydraulic fracturing turned the United States into a net oil exporter. Even so, the country still imports about one-third of its crude supply.
With Middle Eastern heavy crude harder to access during the conflict, refiners have leaned more heavily on domestic oil production, which recently reached record highs. The system can still produce diesel and jet fuel using American crude, but efficiency drops and operating costs rise.
That extra cost eventually reaches consumers.
Rising gas prices in the United States are closely tied to fuel disruptions overseas. As American refineries increased jet fuel production to support global airline demand, gasoline supplies became tighter at home.
Falling inventories, higher wholesale costs, and limited refining capacity pushed prices upward within a short period. The situation shows how quickly problems in one region can affect fuel costs for drivers across the United States.