The answer isn’t in Washington, it’s in the Strait of Hormuz. Here’s what’s actually driving prices at the pump.
$4.16
National average per gallon, April 2026. Highest since 2022
20%
of global oil supply disrupted by Strait of Hormuz closure
$100+
Brent crude per barrel. First time in four years
Can the President fix gas prices?
It’s one of the most common questions in American politics and also one of the most misunderstood. Presidents have limited tools: tapping the Strategic Petroleum Reserve can offer short-term relief, and drilling permits influence long-term domestic supply. But gas is a globally traded commodity. No executive order can override international markets.
When 20% of the world’s oil supply is disrupted by conflict thousands of miles away, prices rise in Houston the same week, regardless of who is in office, or what policies they’ve signed.
The bottom line: Presidents can nudge gas prices at the margins. Global events move them dramatically. Understanding the difference is the first step to understanding energy markets.
The 2026 Energy Crisis
The Strait of Hormuz, a 21-mile-wide waterway between Iran and Oman, is the world’s most critical energy corridor. Before the 2026 conflict, roughly 25% of the world’s seaborne oil and 20% of its liquefied natural gas passed through it daily.
When Iran closed the strait in March 2026 following the outbreak of military conflict, the International Energy Agency called it the “greatest global energy security challenge in history.” Oil surpassed $100 a barrel within days. California gas crossed $5.89 a gallon. And here in Texas, diesel prices jumped more than 60%.
"If the conflict last months, the you're no longer talking about the price spike. You're talking about inflation, slower growth and real pressure on family budgets. (..) These kind of energy shocks, if they last, don't stay at the pump. They really ripple through everything."
WHAT DRIVES THE PRICES
Four forces behind every price at the pump
Geopolitical conflict
Wars, sanctions, and regional instability disrupt supply chains and trigger immediate market reactions, often before a single barrel is affected.
OPEC+ production decisions
A cartel of oil-producing nations controls output levels. When they cut production, global supply tightens and prices climb, independent of U.S. policy.
Seasonal demand shifts
Spring and summer drive demand upward. Refineries also switch to pricier summer-blend gasoline each spring, adding cents per gallon before any global factor enters the picture.
Inflation & the dollar
Oil is priced in U.S. dollars globally. When inflation weakens purchasing power or interest rates shift, commodity prices feel the ripple, including what you pay to fill your tank.
HOUSTON’S DUAL REALITY
The energy capital feels it both ways
No city in America has a more complex relationship with high oil prices than Houston. Higher crude prices improve cash flows for Texas energy operators, fuel investment in new drilling, and support the 1 in 4 Houston jobs tied to the energy sector.
But those same prices burden working families, logistics companies, and the small businesses that keep the city running. Understanding the global forces behind energy markets it’s essential knowledge for anyone in Houston building a career or running a business.
Go deeper on the issues shaping our world
The World Affairs Council of Greater Houston brings together the city’s global community to understand the geopolitical forces that shape our economy, careers and daily lives