U.S. Gas Prices Climb to $4.26/Gal Despite Top Oil Production Amid War Risks

U.S. gasoline prices hit $4.26 a gallon on April 29, 2026, the highest since July 2022, despite the country producing a record 13 million barrels of oil per day. This surge follows WTI crude's rally from $67 (Feb. 27) to $105 (Mar. 30) due to the Iran war disrupting supplies via the Strait of Hormuz, compounded by refinery bottlenecks, record exports drawing down inventories, and steady demand at 9 million b/d. Economists warn of sustained high prices through 2026, risking inflation and curbing consumer spending as summer driving ramps up.