Rising oil prices linked to the conflict involving Iran, Israel, and the United States are driving up gas costs just as millions of Californians prepare for Memorial Day travel.
Americans’ travel plans for this Memorial Day weekend have gotten a lot more expensive as a result of President Donald Trump’s war with Iran.
A tracker released on Wednesday by the Institute on Taxation and Economic Policy (ITEP) projects that Americans will collectively spend an extra $3.5 billion on gas over the holiday weekend due to the global rise in oil costs.
An estimated 6.78 million Southern California residents (including Angelenos) traveled 50 miles or more from home during the most recent Thanksgiving holiday period. This record-breaking figure, tracked by the Auto Club of Southern California, represents a 2.8% increase over the previous year.
The costs of gas have risen sharply, to above $4.50 per gallon across the US on average, as a result of Iran’s restriction of travel through the Strait of Hormuz in retaliation for the war that the US and Israel launched at the end of February.
“Americans were already struggling with the high cost of living before this war started,” said Carl Davis, research director at ITEP. “The fact that their summer travel plans just got a whole lot more expensive isn’t going to help with that.”
Using publicly available data and price forecasts from the US Energy Information Administration, the Federal Highway Administration, and the US Census Bureau, ITEP determined that as a result of the war, Americans have paid about $39.6 billion in additional gas costs in less than three months since the war began.
It is projected that if current conditions continue, the total cost would be about $193 billion by the end of the year.
The average household has already paid an additional $291 for gas since the war began and could spend $1,450 per year’s end. However, the cost varies by region, and the tool allows users to estimate their household’s added cost based on where they live and how many family members they have.
The tracker only accounts for increased gasoline prices. It does not include price hikes caused by the war on other essentials, such as home utilities and food. Federal data released earlier this month showed that inflation has emerged to its highest level since May 2023.
It also does not account for the amount of taxpayer dollars spent on the war. Pentagon officials said that it had cost $25 billion in April, although other independent estimates have placed the total cost much higher.
