Oil executives send a blunt message to Americans on gas prices - thestreet.com

US oil executives have delivered a stark warning to the White House: critically low fuel inventories threaten to send gasoline prices soaring past $5 per gallon as the summer driving season ramps up. This blunt message, widely reported this week, comes as the US-Iran conflict continues to effectively shut down the crucial Strait of Hormuz, severely disrupting global oil flows and straining refining capacity. With US gasoline stockpiles hitting their lowest seasonal levels in a decade, the industry is sounding the alarm on impending price shocks for American consumers. The immediate trigger for this crisis is the ongoing conflict with Iran, which has choked off a fifth of the world's crude oil supply through the Strait of Hormuz, forcing global refineries to draw heavily from existing stockpiles. Despite US refineries operating at a high 95.3% utilization rate as of June 5, 2026, and a slight weekly increase in gasoline inventories, the overall supply cushion has vanished, exacerbated by strong export demand for other refined products like diesel and jet fuel. The Trump administration, however, has publicly downplayed the severity, attributing recent price declines to its policies like waiving the Jones Act and releasing oil from the Strategic Petroleum Reserve, while pushing for increased domestic drilling. Looking ahead, the trajectory of gasoline prices hinges precariously on a potential US-Iran peace deal, which has already seen crude oil prices drop on hopes of the Strait of Hormuz reopening. However, industry experts like GasBuddy's Patrick De Haan warn that even with a deal, prices could take a year or more to fully recover, with global oil inventories projected to fall to 2003 levels by year-end. The coming weeks will test the resilience of the US energy system and the political dexterity of the White House, with the risk of widespread economic inflation looming large ahead of midterm elections.