Surging Fuel Prices Aren’t Curbing Holiday Plans Yet

Summary

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WSJ What’s News: “Surging Fuel Prices Aren’t Curbing Holiday Plans Yet”

Date: May 11, 2026
Host: Luke Vargas
Guests: Dr. Michael Wadman (Medical Director, US National Quarantine Unit), Margarita Stancati (Journal Correspondent), Alex Frangos (WSJ Finance Editor), Ariane Goren (CEO, Expedia Group)

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Episode Overview

This episode explores several key news stories with a particular focus on surging gas and jet fuel prices, their connection to world events and supply disruptions, and how these cost pressures are (or aren’t) changing U.S. consumers’ holiday and travel plans. The show also features an in-depth interview with Expedia’s CEO Ariane Goren about travel trends in light of ongoing economic volatility.

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Key Discussion Points

1. Cruise Ship Hantavirus Outbreak & Public Health Response

[00:17-02:22]

• Passengers from a cruise ship struck by hantavirus are returning home after 40 days at sea and quarantine in Spain’s Canary Islands. Two tested positive, but WHO’s Dr. Tedros reassures, "this is not the onset of another pandemic."
• Dr. Michael Wadman clarifies precautions at Nebraska’s National Quarantine Unit, emphasizing safety protocols and negative airflow rooms:

  “This is not another Covid, and the risk to the public is low. So they shouldn't be scared and they shouldn't panic.” (Dr. Michael Wadman, 01:35)

2. U.S.–Iran Tensions Stall Peace, Oil Prices Surge

[02:22-03:49]

• Iran rejected the latest U.S. proposal to end Middle East hostilities, as it resists demands to dismantle its nuclear program. Journalist Margarita Stancati outlines Iran’s counter-offer:

  “Iran has shown some degree of flexibility… it has proposed to have some of the highly enriched uranium diluted and the rest of it transferred to a third country. So it is possible that we will eventually see an agreement on that front as well. But not right now.” (Margarita Stancati, 03:37)

• Fading hopes for a peace deal boost oil futures (+2%), and U.S. average gas prices surge to $4.52/gal, with California drivers paying over $6.15/gal.

3. Oil Supply Dynamics & Gas Tax Debate

[03:49-06:04]

• Tanker supplies to California are complicated by increased global competition, retention by Asian exporters, and logistical bottlenecks—even after U.S. rules are relaxed to allow more domestic fuel shipping.
• U.S. Energy Secretary Chris Wright says suspending the 18-cent federal gas tax is being considered.
• WSJ’s Alex Frangos discusses the pros and cons:

  “If you suspend a tax, then you don't get the revenue... The Highway Trust Fund has been dwindling over the years because the tax is a fixed amount... You get rid of it for six months — that's 17, 18 billion dollars the federal government won't have.” (Alex Frangos, 05:24) “If you cut the gas tax, you're lessening the pain for drivers, but that just means they're going to drive more... what you really want is for drivers to drive... less in order to take the pressure off the market.” (Alex Frangos, 05:46)

4. International Economic Ripple Effects

[06:04-06:48]

• Rising Middle East war-fueled energy costs push China’s producer prices to a 4-year high.
• Contrast: While inflation worries the West, China sees this as potential economic improvement after years of deflation.
• U.S. investors await CPI inflation data and a Trump-Xi Jinping summit for further market direction.

5. Travel Trends Amid High Fuel Costs: Interview with Expedia CEO Ariane Goren

[07:08-10:51]

Demand Remains Robust Despite Higher Costs

• Ariane Goren reports that demand for summer travel is “really healthy” even as airfares and gas prices climb:

  "We just reported our first quarter earnings and had the strongest first quarter start that we've had in years... Cancellations have dissipated in April and we're seeing demand pick up again. So people definitely want to get out there and travel for the summer." (Ariane Goren, 07:39)

Travel Disruptions and Company Response

• The Middle East conflict caused global cancellations in March, but Expedia focused on customer service, flexibility, and direct support—shifting more toward human interaction than AI automation during crisis points.

Shifts in Traveler Behavior

• Despite speculation about a shift from air to driving due to costs, Goren says:

  “Right now we're not seeing any kind of big shifts coming through in the numbers.” (Ariane Goren, 09:18)

  • She notes possible upcoming domestic travel surges due to big events (World Cup, US 250th).

Reflections on Consumer Priorities

• Goren reflects on the pandemic’s long-term effects:

  "One thing that Covid taught us... people really value experiences and getting out in the world and they will adjust based on, you know, what are prices, what's available out there. But people want to get out and travel." (Ariane Goren, 09:53)

Market Uncertainty Ahead

• Cautious optimism, but acknowledges the unknown:

  "Everybody is amazed that demand is holding up as well as it is... we look at indicators... despite those, the demand is there. But obviously, as we look forward through the year, who knows what's going to come?" (Ariane Goren, 10:27)

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Notable Quotes & Memorable Moments

• "This is not another Covid, and the risk to the public is low. So they shouldn't be scared and they shouldn't panic."
  – Dr. Michael Wadman, 01:35

• "The Highway Trust Fund has been dwindling... You get rid of it for six months – that's 17, 18 billion dollars the federal government won't have."
  – Alex Frangos, 05:24

• "We just reported our first quarter earnings and had the strongest first quarter start that we've had in years... So people definitely want to get out there and travel for the summer."
  – Ariane Goren, 07:39

• "One thing that Covid taught us... people really value experiences and getting out in the world... people want to get out and travel."
  – Ariane Goren, 09:53

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Timestamps of Important Segments

• 00:17–02:22: Cruise ship hantavirus outbreak and U.S. response
• 02:22–03:49: U.S.–Iran diplomatic standoff and impact on oil prices
• 03:49–06:04: Gas/jet fuel supply disruptions & gas tax suspension debate
• 06:04–06:48: Chinese inflation turns positive, U.S. inflation outlook
• 07:08–10:51: Expedia CEO on travel demand, behavior, and outlook amid rising prices

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Transcript

[Google AI Announcer]

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[Luke Vargas]

Evacuated ship passengers test positive for hantavirus as they finally head home. Plus why gas prices are about to get a lot worse for Californians. And Expedia's CEO tells us that consumers may be anxious, but they're still booking trips.

[Ariane Goren]

Everybody is amazed that demand is holding up as well as it is. And we look at indicators, we look at consumer confidence, we look at fuel prices, we look at air ticket prices. You know, despite those, the demand is there.

[Luke Vargas]

It's Monday, May 11th. I'm Luke Vargas for the Wall Street Journal and here is the AM edition of what's news. The top headlines and business stories moving your world today. Around 150 passengers from a hantavirus stricken cruise ship are finally returning home after spending 40 days at sea. The ship was allowed to dock in Spain's Canary Islands, where authorities have been coordinating flights for quarantine and isolation after disembarking. A French and American passenger have both tested positive for the virus, while another American developed mild symptoms. The the who's director General Tedros Gabrielsus oversaw the transfer of passengers in Tenerife and reiterated yesterday that this is not the onset of another pandemic.

[Dr. Michael Wadman]

This is not another Covid, and the risk to the public is low. So they shouldn't be scared and they shouldn't panic.

[Luke Vargas]

Us Passengers are arriving in Omaha, Nebraska for monitoring at a national quarantine unit led by medical director Dr. Michael Wadman.

[Dr. Michael Wadman]

We have protocols in the quarantine unit that provide for safe care of these, of these persons, including just all the activities of daily living so that they can, you know, have a comfortable stay, but also have it in an area that's protected and limits spread of the pathogen. Our facilities have negative airflow rooms, each one individually negative airflow as well as filters to limit spread of pathogen.

[Luke Vargas]

Public health officials in states including Virginia, Texas and Georgia are monitoring other Americans who got off the ship before authorities confirmed the outbreak. Iran is rejecting a US Proposal to end the war, which included calls that it dismantle its nuclear facilities, leading President Trump to call Tehran's response totally unacceptable. So how close did the two sides come to an agreement? Several weeks after they first traded peace proposals, Journal correspondent Margarita Stancati has been keeping tabs on their diplomacy.

[Margarita Stancati]

So the two sides have been trading proposals over the last few weeks. Iran responded to the latest U.S. proposal recently, and it essentially said this is how, if fighting could end, there'll be this gradual reopening of the Strait of Hormuz to commercial traffic, so long as the US Lifts its blockade. But it's also saying, we don't want to talk about the nuclear program right now. We will negotiate that, but we want to do that separately over the next 30 days. And the response from Trump has been that this, this is completely unacceptable. So we're still waiting to see how the Iranians will respond to that. But on the nuclear issue specifically, Iran has shown some degree of flexibility, some opening. It has proposed to have some of the highly enriched uranium diluted and the rest of it transferred to a third country. So it is possible that we will eventually see an agreement on that front as well. But not right now.

[Luke Vargas]

Well, fading hopes of a peace deal are reigniting a climb in oil futures, with Brent and WTI contracts up around 2% today, according to AAA. Americans on average are paying $4.52 a gallon for gas, with drivers in California hardest hit. Prices there are north of $6.15 a gallon and likely to rise in a state that's reliant on imports for three quarters of the oil it consumes. A tanker carrying Middle Eastern oil just stocked in Long Beach. But according to market intelligence firms Vortexa and Kepler, it'll be to do so for months, as some Asian fuel exporters have chosen to keep supplies at home. Tankers have been transporting fuel to the west coast from the Gulf coast and Alaska after Washington relaxed rules on foreign vessels carrying goods between American ports, though a Chevron spokesman said that a lack of available vessels is slowing the amount of relief possible from rerouting supplies. Meanwhile, to cushion against pricier gas nationwide, U.S. energy Secretary Chris Wright is weighing a suspension of the roughly 18 cents a gallon federal gas tax. Here he was when asked about that proposal on NBC's Meet the Press.

[Ariane Goren]

We're open to all ideas. Everything has trade offs, all ideas to

[Luke Vargas]

lower prices for American consumers and American businesses. I asked Journal Finance editor Alex Frangos what those trade offs might be.

[Alex Frangos]

The main trade off is if you suspend a tax, then you don't get the revenue. And the gas tax and tax on diesel brings in about $37 billion a year for the Highway Trust Fund, which is used to fix your interstate highways around the country. And that TR fund has been dwindling over the years because the tax is a fixed amount around 18 cents per gallon. But it's been 18 cents a gallon since 1993 and it's not indexed to inflation. So you get rid of it for six months. There's 17, 18 billion dollars that the federal government won't have. The other factor is that if you cut the gas tax, you're lessening the pain for drivers, but that just means they're going to drive more. And what you really want in these situations is for drivers to drive a bit less and conserve and lessen the demand a little bit in order to take the pressure off the market.

[Luke Vargas]

Meanwhile, China's factory gate inflation has soared to a four year high as the war in the Middle east keeps fueling higher energy costs. Consumer price growth also accelerated. But unlike in other countries where rising inflation is a concern, China has been battling years of deflation. And so the change in pricing could be a sign of the economy improving. That data comes ahead of tomorrow's US CPI reading for April, the main data point for the week, with investors otherwise keeping their eyes on Thursday's summit between President Trump and Chinese leader Xi Jinping. Up next, we'll hear from the CEO of Expedia about how fuel prices are affecting your travel plans. That's after the break.

[Google AI Announcer]

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[Interviewer]

With jet fuel prices soaring, airlines keep warning investors about coming hits to their bottom lines. And with American consumers already inflation wary, is the travel industry in store for some major turbulence? Well, who better to ask than ariane

[Luke Vargas]

Goran, the CEO of Expedia Group, which

[Interviewer]

in addition to running Expedia.com runs Hotels.com, vRBO and a number of other book sites. Ariane, we know prices are rising, particularly in airfare. How is this affecting summer travel plans?

[Luke Vargas]

Is it?

[Ariane Goren]

Look, we are still seeing really healthy demand for summer travel plans. We just reported our first quarter earnings and had the strongest first quarter start that we've had in years. Now, obviously the events that happened in the Middle east in March did have an impact. It had a wave of cancellations, especially in Europe and Asia. We also saw travel advisories into Mexico that dampened demand somewhat in March. But, you know, the cancellations have dissipated in April and we're seeing demand pick up again. So people definitely want to get out there and travel for the summer.

[Interviewer]

Did you get involved in any way as a company to try to prevent sort of a contagion of cancellations from occurring, or is it just decisions? People have arrived on Completely on their own.

[Ariane Goren]

Look, you know, there were a lot of cancellations just because flights were canceled. The Middle east actually was almost 10% of global air traffic. And so when the conflict broke out, there were a lot of cancellations. And when that happens, our focus is taking care of travelers, taking care of travelers who are in trip and taking care of travelers who had planned trips. So we work with our hotel partners, our airline partners to extend flexibility and then also just to make sure that we can pick up the phone and answer questions for travelers. So we spend a lot on AI to automate and have self service. But at times like that, people want to talk to a real human being and that's what we do.

[Interviewer]

At Expedia Group, are we seeing prices, whether it's for hotels or airfare continuing to go up? And if so, is it global or are certain regions being spared or even, I don't know, do. Have we seen enough sort of hit to demand that actually some things could get a bit competitive and maybe tempting for someone looking for a deal?

[Ariane Goren]

We are looking, you can imagine in detail at the numbers to see are we seeing a shift in consumer behavior from fly to to drive to? Right now we're not seeing it in the numbers, but you know, let's see. I think this summer in the US There are a lot of big event. There's the World cup, there's the US 250th anniversary celebration. Perhaps we will have more domestic travel, perhaps in Europe we'll have more domestic travel, we'll see. But right now we're not seeing any kind of big shifts coming through in the numbers.

[Interviewer]

I guess high prices at the pump could be one of the factors where the shift from fly to to drive to is obvious. But there's pain to be had there as well.

[Ariane Goren]

But you know, one thing that Covid taught us, and I know it's so long ago, but people really value experiences and getting out in the world and they will adjust based on, you know, what are price is what's available out there. But people want to get out and travel.

[Interviewer]

I mean, what is the anxiety level in this moment? I know you're saying bookings seem pretty healthy, the demand is there. You know, this is a question we've been asking CEOs across industries is it's fine for right now, but is there concern things don't get better, particularly on the pricing front that I don't know, we could be looking at a softer demand in the fall, in the winter. What are you hearing?

[Ariane Goren]

You know, absolutely, because I think everybody is amazed that demand is holding up as well as it is. And we look at indicators, we look at consumer confidence, we look at fuel prices, we look at air ticket prices. You know, despite those, the demand is there. But obviously, as we look forward through the year, who knows what's going to come?

[Interviewer]

Ariane Goren is the CEO of Expedia Group. Ariane, thank you so much for being with us on what's News.

[Ariane Goren]

Thanks so much.

[Luke Vargas]

And that's it for what's News for this Monday morning. Today's show was produced by Hattie Moyer and Daniel Bok. Our supervising producer is Sandra Kilhoff. And I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show and until then, thanks for listening.

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