- Energy Secretary Chris Wright suggested gas prices could remain elevated until next year.
- President Trump said he was “totally wrong” and prices will drop once conflict in Iran ends.
- National average price of gas is $4.042 per gallon with mid-term elections in November.
The national average price of a gallon of gasoline has dropped to $4.042, but it will likely start climbing again as the United States seized an Iranian cargo ship and Iran declared the Strait of Hormuz was closed again. That’s bad news as prices are already $0.89 higher than a year ago.
Unfortunately, the Trump administration is giving Americans conflicting timelines for relief. Over the weekend, Energy Secretary Chris Wright appeared on CNN’s State of the Union and said gas prices have “likely peaked,” but might not drop below $3 per gallon until later this year or perhaps next year.
More: Gas Was $2.98 A Month Ago, It Just Crossed $4 For The First Time Since 2022
While he’s not exactly sure when prices will return to normal, Wright said energy costs will go down once the Iran war is over. However, the conflict appears to be spiraling as peace talks are in doubt over the latest escalations and Iran has threatened retaliation over the ship seizure.
However, that hasn’t stopped President Trump from claiming gas prices are going to fall quickly. Speaking with The Hill, he said Wright was “totally wrong” about suggesting gas prices might not return to $3 per gallon until 2027. He went on to imply prices will drop to that mark as soon as the war with Iran is over.
However, that seems unlikely as it took nearly a month for gas prices to climb from roughly $2.95 per gallon to over $4 per gallon. The International Energy Agency has noted the war caused the “most severe oil supply shock in history” and global observed oil inventories fell by 85 million barrels in March with “stocks outside of the Middle East Gulf drawn down by a significant 205 million barrels as flows through the Strait of Hormuz were choked off.”
The IEA has also stated “resuming flows through the Strait of Hormuz remains the single most important variable in easing the pressure on energy supplies, prices and the global economy.”
