More than two months after Iran shut down the Strait of Hormuz following attacks by the United States and Israel, gasoline prices continue to rise across Santa Barbara and the nation. As of May 4, the average price in Santa Barbara was $5.95 per gallon, up 24.1 cents from the previous week and up more than $1.30 from the beginning of the conflict. The city’s cheapest station was selling gasoline for $5.39 per gallon, while the most expensive station was selling for $6.79.
The dramatic price increase in Santa Barbara reflects statewide and nationwide spikes. Roughly a fifth of the world’s crude oil supply transited through the Strait of Hormuz prior to its closure on March 2. The shipping disruption and ongoing conflict has caused extreme volatility of crude oil prices, which were hovering around $108 per barrel of Brent crude on Tuesday evening. As a result, gasoline prices everywhere have soared. California prices remain well above the national average, in large part due to strict environmental regulations and the state’s high gasoline tax; nonetheless, consumers everywhere are seeing painful price increases at the pump.
While the U.S. as a whole exports more oil than it imports, the majority of crude oil processed in California’s refineries is sourced from abroad. In 2025, 61 percent of the state’s oil was imported, while just 23 percent of crude oil originated in-state; another 16 percent came from Alaska. Twenty-nine percent of the foreign oil California processed was Middle Eastern, primarily from Iraq and the United Arab Emirates.