✍️ Blog › 💵 Money & personal finance › Gas and diesel prices
Oil hit $110. Here's why, and what it means at the pump
By The Trends Incoming team · 2026-10-17
If filling up felt extra painful this week, you're not imagining it. On Friday, Brent crude touched $110 a barrel for the first time since May, and U.S. crude closed above $100. AAA's national average for regular gas was about $4.33 a gallon on Oct 16, and diesel was $6.33. Here's what's going on, without the panic.
What happened this week
- Oil jumped. Per CNBC, Brent closed Friday at $109.86, up 3.7% on the day, and U.S. West Texas Intermediate rose 3.5% to $101.41. WTI gained more than 10% this week.
- Stocks felt it. NBC News reports tech shares lost more than $1 trillion in value Friday. The Nasdaq 100 fell 2.5% and the S&P 500 about 1%, while energy stocks rose. See our trending stocks page.
Why it's happening
1. The Strait of Hormuz. CNBC reports at least nine tankers and cargo ships have been attacked near the strait since Sunday, and U.S. Central Command said Iran sank a container ship on Wednesday; its crew was evacuated safely. Crude shipments through the strait were about 70% of their pre-war average last week, per Kpler data cited by CNBC. NBC traces this year's price climb back to late February, when the U.S. and Israel attacked Iran and the strait was closed. Our Hormuz explainer covers why that narrow waterway matters so much.
2. Saudi Arabia and the Houthis. Yemen's Houthis have fired missiles and drones at Saudi Arabia all week. On Friday, Saudi officials said they intercepted several missiles, including one heading toward the Yanbu oil export terminal.
3. Russia and Ukraine. An "energy ceasefire" the White House tried to broker has unraveled, CNBC reports, and Ukraine says it will keep striking Russian refineries. CNBC says diesel has surged this year because of Ukraine's attacks on Russian refineries and Iranian strikes on Middle East energy infrastructure. That's why diesel, at more than 70% above a year ago, has climbed faster than regular gas.
4. A hurricane hangover. The Energy Information Administration reported U.S. commercial crude inventories fell by more than 8 million barrels in the week ended Oct 9, partly because Gulf Coast production was shut in for Hurricane Isaias.
What it means for you
- Prices vary a lot by state and even by street. AAA's site shows state and metro averages, so it's worth checking before a long drive.
- Diesel hits more than truckers. It moves food and goods, so high diesel can nudge up prices on lots of everyday stuff.
- Rates could feel it too. NBC notes higher energy prices raise the odds the Federal Reserve hikes rates again this year, after a quarter-point increase in September. That matters for mortgages and credit cards. Our housing and mortgages page tracks the weekly rate.
Fuel costs are also a campaign issue heading into Nov 3, and both parties have their own case on what to do about them. Our Elections 2026 hub links the polls and arguments neutrally.
What to watch next
- Shipping news out of the Strait of Hormuz and the Red Sea.
- Whether Russia and Ukraine return to any energy truce.
- AAA's daily averages and the EIA's weekly gas and diesel report every Monday.
Where to follow it
AAA for the price at the pump, the EIA for official weekly data, and CNBC or NBC News for the market story. Our gas and diesel prices hub and Middle East hub stay updated. The hashtag links below show what drivers are posting, which is mostly receipts.
Quick answers
Why are gas prices so high right now?
Oil jumped this week as ships were attacked near the Strait of Hormuz, Houthi missiles targeted Saudi Arabia and strikes on Russian refineries resumed, tightening supply. Brent touched $110 on October 16.
What is the national average for gas?
About $4.33 a gallon for regular on October 16, 2026, per AAA. Diesel was $6.33.
Why has diesel gone up so much?
Per CNBC, Ukraine's attacks on Russian refineries and Iranian strikes on Middle East energy infrastructure have pushed diesel up this year. AAA's average was $6.33 a gallon on October 16, more than 70% above a year earlier.
Where can I check prices near me?
AAA's gas prices site has state and metro averages, and the EIA publishes official weekly gas and diesel prices.
Follow it
The trend card
Gas $4.33, diesel $6.33
AAA's national average for regular was about $4.33 on Oct 16, and diesel is $6.33, more than 70% above a year ago. U.S. crude closed above $100 Friday for the first time since September as Hormuz attacks and refinery strikes hit supply.
Sources
- CNBC: Brent touches $110 as Iran escalates Hormuz attacks
- NBC News: tech stocks fall as oil surges
- AAA gas prices
- AAA Newsroom
- EIA: gasoline and diesel prices
By The Trends Incoming team · Fact-checked 2026-10-17. Dates change, so double-check with the official source.