Energy Secretary Chris Wright indicated Sunday that U.S. gasoline prices may not dip below $3 per gallon until next year, attributing the sustained high costs to the ongoing conflict in Iran and its global economic repercussions. This projection signals continued financial strain for American households already grappling with elevated fuel costs.
State of Play
Gas prices peaked at $4.16 per gallon earlier this month, according to AAA data, driven by geopolitical instability and disruptions in global energy markets. Wright emphasized that while prices have likely peaked, a return to pre-war levels under $3 per gallon remains uncertain until 2027. 'That could happen later this year. That might not happen until next year,' Wright stated during an appearance on CNN's State of the Union.
Impact on American Workers
The prolonged high gas prices are expected to weigh heavily on American workers and families, particularly those reliant on commuting or transportation for their livelihoods. A recent CBS News/YouGov poll found that 51% of adults described gas prices as either 'difficult' or a 'financial hardship,' underscoring the broader economic toll of sustained fuel costs.
'Prices have likely peaked, and they'll start going down, certainly with a resolution of this conflict, you'll see prices go down,' Wright said.
The Trump administration has pointed to its management of the energy crisis as a success, noting that current prices remain $1 below the peak seen during the Biden administration in 2022. However, the prolonged elevation of gas prices continues to pose challenges for American consumers and the broader economy.