The effective closure of the Strait of Hormuz has triggered massive price spikes across petroleum products, prompting U.S. refiners to shift their production priorities. In a new insight, Director of Energy and Environmental Policy Shuting Pomerleau discusses why refiners are focusing on jet fuel over gasoline.

Key points:

• The strait closure drove up U.S. Gulf Coast jet fuel spot prices by 110 percent year over year by mid-May 2026, while U.S. gasoline prices rose 40 percent over the same period.
• In response to this increased premium on jet fuel relative to gasoline, U.S. refiners have adjusted their refining processes to maximize jet fuel production to capture the high margins.
• If the recently announced U.S.-Iran agreement leads to a near-term reopening of the strait, it would allow Persian Gulf petroleum exports to resume and stabilize global markets; alternatively, an extended closure will keep crude oil high, prompting U.S. refiners to continue prioritizing high-margin jet fuel exports to Europe and Asia.

Read the analysis.