United States gas prices may not fall below US$3 per gallon again until 2027, Energy Secretary Chris Wright said, as the Iran war continues to disrupt oil shipping.
The national average gas price is $4.048 per gallon today, per AAA, up from $2.90 at the beginning of February. The Strait of Hormuz, where about one-fifth of global oil shipments would usually transit, remains closed amid both Iranian attacks on ships and a U.S. blockade of Iran’s ports.
“That could happen later this year. That might not happen until next year,” Wright told CNN’s State of the Union when asked when gas prices could drop below $3.
“But prices have likely peaked and they will start going down. Certainly, with a resolution of this conflict, you will see prices go down.”
Wright claimed that ships would be able to pass through the strait after the U.S. and Iran reach a peace deal, saying that this “won’t be in the too-distant future”.
The countries’ two-week ceasefire remains in effect. The U.S. will send a delegation to Pakistan on Monday for potential peace negotiations after abandoning a previous round of talks, though Iran has said it does not plan to participate in this week’s discussions.
U.S. Treasury Secretary Scott Bessent had said last week that gas prices could fall under $4 per gallon in the summer, while President Donald Trump said prices would likely remain the same until at least November.
The U.S. began blockading Iranian ports last week. While Iran said on Friday that it had opened the Strait of Hormuz following a ceasefire between Israel and Lebanon, it closed the waterway again on Saturday in response to the blockade.
Two Iranian gunboats fired on a tanker in the strait on Saturday, according to the United Kingdom Maritime Trade Operations, and a container ship was hit by an unknown projectile off Oman’s northeastern coast.
Oil prices continued to rise today, with Brent crude up 4.7% to $94.61 per barrel by 12:05 pm AEST.
