Crude oil and petroleum product prices increased sharply in the first quarter of 2026 after military action in the Middle East on February 28 led to a de facto closure of the Strait of Hormuz, according to the U.S. Energy Information Administration.

Brent crude opened the year at $61 a barrel and finished the first quarter at $118 a barrel, the largest inflation-adjusted quarterly increase in EIA data going back to 1988. The gap between Brent and West Texas Intermediate futures widened sharply in March, peaking at $25 a barrel on March 31 and averaging $11 a barrel for the month, the highest spread in more than five years.

U.S. average retail gasoline prices reached $3.99 a gallon and average diesel prices reached $5.40 a gallon on March 30, the highest levels in real terms in over two years, the agency said.

U.S. refinery inputs in the first quarter exceeded the five-year range for the period, averaging close to 2018-2020 levels, as refiners ran harder to capture wider margins on distillate fuel. Distillate crack spreads at New York Harbor averaged $1.42 a gallon in March, the highest monthly level since 2022 and roughly double the five-year average of 68 cents a gallon. EIA said stronger-than-usual trucking demand in February was among the factors adding to distillate market tightness, alongside increased U.S. exports to Europe and cold weather in the Northeast.

Source: U.S. Energy Information Administration - https://www.eia.gov/todayinenergy/detail.php?id=67424