Business
Iran conflict pushes US gas prices to all-time record highs this summer
FOX Business correspondent Lauren Simonetti reports on rising crude oil prices as analysts forecast $5-a-gallon gas prices by Memorial Day amid Middle East tensions near the Strait of Hormuz on ‘Varney & Co.’
Gas prices are entering the summer driving season at record levels, with the national average hitting $4.45 on May 2—the highest ever for that date.
That’s up about $1.28 from a year ago, according to AAA, with prices rising across nearly every region.
OIL, GAS PRICES JUMP AS TRUMP FLIRTS WITH STRIKING IRANIAN OIL INFRASTRUCTURE
The milestone underscores ongoing volatility in fuel markets, driven in part by the escalating conflict involving Iran, which has disrupted global oil supplies and pushed crude prices higher.
It also suggests the usual seasonal run-up is starting from a much higher baseline. For consumers, that likely means higher transportation costs and continued pressure on household budgets.
SAN FRANCISCO BECOMES FIRST US CITY WHERE DIESEL PRICES TOP $8 A GALLON

People fuel vehicles at a gas station in Los Angeles, on Nov. 15, 2021. (Zeng Hui/Xinhua via Getty Images / Getty Images)
West Coast drivers are seeing the highest costs, with prices reaching $6.10 per gallon in California and $5.67 in Washington. Meanwhile, on the East Coast, gas prices have surpassed $4 in several areas, including $4.48 in Washington, D.C., and $4.52 in Pennsylvania.
Meanwhile, in the Midwest, Illinois stands out at $4.93 per gallon, while much of the region remains in the mid-$4 range. While Southern states remain comparatively cheaper, prices are climbing there as well, with Georgia at $3.85, Texas at $3.92 and Florida higher at $4.34.
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A person is seen grabbing the nozzle for diesel fuel at a gas station. (Rebecca Noble/Bloomberg/Getty Images / Getty Images)
Beyond gasoline, other fuel costs are rising even faster. Diesel has climbed to $5.64, up about $2.09 over the past year. As a key fuel for freight, shipping and public transportation, it is especially sensitive to supply disruptions — and its rising cost can quickly ripple through the broader economy, pushing up prices on everything from groceries to goods.
The surge underscores the broader economic risks tied to the standoff, as uncertainty around the Strait of Hormuz continues to weigh on energy markets.
Business
McDonald’s is quietly phasing out a popular customer perk nationwide
When speaking at the McDonald’s Impact Summit, President Donald Trump urged the company to put more tartar sauce on the Filet-O-Fish.
McDonald’s is quietly ending the era of self-serve soda fountains nationwide.
The shift, years in the making, is part of a broader effort by McDonald’s to modernize its restaurants, reduce labor and maintenance demands, and adapt to changing consumer habits that increasingly favor takeout, delivery and drive-thru service over dining in.
MCDONALD’S GOES ALL-IN ON AFFORDABILITY: FULL MENU REVEALED FOR NEW UNDER $3 AND $4 DEALS

A self-serve soda fountain at a McDonald’s restaurant, a feature the company is phasing out nationwide. (Mario Tama/Getty Images / Getty Images)
The company plans to complete the transition away from self-serve beverage stations in U.S. dining rooms by 2032, with the changes expected to roll out gradually over the next several years as restaurants are remodeled or updated.
In many locations, drinks are already being prepared behind the counter rather than poured by customers, marking a clear departure from a long-standing self-service model that has been a staple of fast-food dining rooms for decades.
For customers, the change marks the end of a familiar convenience, as self-serve stations have traditionally allowed easy refills and drink customization.
MCDONALD’S PLANS MASSIVE OVERHAUL WITH MAJOR CHANGES TO RESTAURANTS AND MENUS

An exterior view of a McDonald’s fast food restaurant on May 24, 2024. (Paul Weaver/SOPA Images/LightRocket / Getty Images)
The move also gives McDonald’s greater control over beverage portions, cleanliness and inventory, while cutting maintainance costs for the self-serve machines.
The shift reflects a broader trend across the fast-food industry, where companies are prioritizing speed, efficiency and digital ordering over traditional dine-in experiences.
At the same time, McDonald’s has rolled out an expanded menu featuring new “dirty sodas” and refreshers as consumer demand shifts beyond traditional soft drinks and coffee.
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McDonald’s is currently rolling out new drink options, to include ‘dirty sodas.’ (Smith Collection/Gado/Getty Images / Getty Images)
In a statement to FOX Business, McDonald’s signaled the shift, saying: “Our fans’ love for McDonald’s beverages runs deep… Next month, we’re building on that passion with a new era of beverages, featuring a variety of Refreshers and crafted sodas rolling out nationwide.”
The company added that it will share more details soon.
McDonald’s did not immediately respond to FOX Business’ request for comment regarding the removal of the fountain machines.
Business
Mexico’s ruling morena party appoints Adriana Montiel as new leader

Mexico’s ruling morena party appoints Adriana Montiel as new leader
Business
LG Display Q1 2026 slides: OLED shift advances amid revenue decline

LG Display Q1 2026 slides: OLED shift advances amid revenue decline
Business
German chancellor downplays row with Trump after troop drawdown announced

German chancellor downplays row with Trump after troop drawdown announced
Business
Southwest honors Spirit Airlines captain after retirement flight canceled
Fox News correspondent Madison Scarpino reports on Spirit Airlines shutting down, canceling all flights, causing travelers to rebook with other airlines, on ‘Fox Report.’
A Spirit Airlines captain whose retirement flight was scrapped by the carrier’s sudden shutdown got an unexpected sendoff as a Southwest crew stepped in to honor his decades in the cockpit.
Capt. Jon Jackson was supposed to fly his final trip before retirement but instead found himself seated in the back of a Southwest flight heading home with his son, Chris Jackson, a Southwest first officer, Southwest wrote on Instagram.
“Chris casually mentioned to the flight’s pilots that this would have been his dad’s retirement flight. They seized the opportunity to change the course of the day for Capt. Jackson,” the post read.
The crew quickly sprang into action, coordinating with dispatchers to arrange a surprise retirement tribute upon landing in Baltimore.
SEN WARREN BLASTED FOR CHEERING BLOCKING OF MERGER THAT MIGHT HAVE SAVED SPIRIT AIRLINES

A Spirit Airlines Airbus A321 aircraft parked at Luis Munoz Marin International Airport after the airline announced it was ceasing operations, in Carolina, Puerto Rico, May 2, 2026. (Reuters/Ricardo Arduengo)
When the aircraft touched down, airport fire crews greeted it with a traditional water cannon salute, a symbolic honor typically reserved for milestone flights. Ground crews then welcomed the veteran pilot at the gate with cheers and a celebratory bottle of champagne.
“Ladies and gentlemen, Mr. Jon Jackson,” a gate agent said over an intercom as the retiring pilot walked out to a round of applause from airport workers and travelers at the crowded gate.
“Very overwhelming, I can’t thank you all enough,” Jackson said as he received a bottle of champagne. “As Spirit goes down, this is kind of a sad day, and you guys made it incredible. Thank you so much.”

Spirit Airlines jets sat on the tarmac at Fort Lauderdale-Hollywood International Airport in Florida, on May 2, 2026. (Giorgio Viera/AFP via Getty Images)
TRUMP TRANSPORTATION SEC DUFFY ANNOUNCES RELIEF FOR SPIRIT AIRLINES FLYERS, EMPLOYEES
Southwest said the gesture was meant to recognize Jackson’s years of service after his original retirement plans were abruptly canceled.
“It was a powerful reminder of the aviation community’s ability to show respect, compassion, and solidarity when it matters most,” the airline said in the social media post.
The memorable farewell comes after Spirit announced early Saturday it would cease operations immediately, canceling all flights and shutting down customer service, leaving many travelers stranded.

A message from Spirit Airlines at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning, in Florida, May 2, 2026. (Reuters / Miguel Rodriguez)
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The collapse of the budget airline also reignited debate over whether federal regulators got it wrong in blocking a proposed JetBlue-Spirit merger, with opponents now arguing the decision may have reduced competition and contributed to the airline’s downfall.
Fox News Digital’s Jasmine Baehr contributed to this report.
Business
Kashkari says Iran war limits Fed’s ability to provide rate guidance

Kashkari says Iran war limits Fed’s ability to provide rate guidance
Business
Iran says it has received US response to its latest offer for talks

Iran says it has received US response to its latest offer for talks
Business
Capstone Copper Q1 2026 slides: record EBITDA despite strike impact

Capstone Copper Q1 2026 slides: record EBITDA despite strike impact
Business
Mattel Q1 2026 slides: revenue beats amid sharp margin decline

Mattel Q1 2026 slides: revenue beats amid sharp margin decline
Business
Iran reportedly reviews US response to 14-point proposal via Pakistan

Iran reportedly reviews US response to 14-point proposal via Pakistan
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