Iran War Impact With gasoline still above $3 a gallon and the ceasefire already under pressure, the Trump administration is preparing Americans for the long journey back to cheap fuel.
American motorists should not expect relief at the pump anytime soon. Energy Secretary Chris Wright conceded on Sunday that average gasoline prices — which have soared since the outbreak of hostilities between the U.S. and Iran — may not fall below $3 a gallon until next year and possibly until 2027.
Trump’s admission comes at a difficult time for the Republican Party, with midterm elections looming and household budgets stretched by fuel costs that have climbed more than a dollar above 12 months ago.
What Chris Wright said about gas prices and the Iran war
Chris Wright, speaking on CNN’s State of the Union program, stopped short of offering a firm timetable for returning to sub-$3 fuel. “That could happen later this year. That could not happen until next year (2027),” he said when asked directly when Americans should expect prices to fall below that level.
But Chris Wright offered cautious optimism. “But prices have probably peaked and will start to come down, certainly with the resolution of this conflict you will see prices come down,” he said.
Wright also sought to reframe the benchmark itself, arguing that $3 per gallon of gasoline represented the true value from a historical perspective. “Under $3 a gallon, the inflation-adjusted value is pretty tremendous,” he said. “We will definitely be back there.
Chris Wright went on to point out that even at their recent peak, prices remain below the highs seen during the Biden administration. The costliest point in the current crisis came earlier this month, when the national average hit $4.16 a gallon. As of Sunday, that figure was down slightly to $4.05, according to AAA data — still nearly a dollar above the $3.16 average seen a year ago.
Trump administration divided on fuel price timeline
Chris Wright’s remarks are in remarkable tension with those of his colleagues. Treasury Secretary Scott Bessent, speaking last week, predicted prices would drop back to $3 a gallon by summer.
President Donald Trump himself has indicated that increased prices could last until November — a timeline more in line with Wright’s assessment, though it has significant medium-term implications.
How the Iran War Raises Gas Prices Across America
The conflict between the US and Israel on the one hand and Iran on the other has roiled oil markets and driven up fuel prices in ways that are now acutely registering in American households. A CBS News/YouGov poll conducted this month found that 51% of adults said gas prices were a “difficult” or “financial hardship” for their family finances.
The disruption goes beyond road traffic. Airlines have begun warning of potential jet fuel shortages as the effects of war ripple through supply chains. US Transportation Secretary Sean Duffy addressed those concerns on Sunday, suggesting that pressure will ease as the conflict recedes.
“So yes, a little disruption, hopefully for a short period of time, but in the long run it’s cheaper for Americans to travel because of the reduced jet fuel prices,” Duffy said.
Iran ceasefire under pressure as Trump threatens escalation
The US and Iran reached a 10-day ceasefire agreement last week, but the fragile truce is already showing signs of breaking down. Trump on Sunday accused Iran of violating the deal through weekend attacks on vessels in the Strait of Hormuz. US officials are expected to arrive in Pakistan on Monday for further talks, Trump announced via social media.
In a post that revived earlier warnings made before the ceasefire, Trump wrote: “We are offering a very fair and reasonable DEAL and I hope they accept it, because if they don’t, the United States will shut down every single plant and every bridge in Iran.”
What Cheaper Gas Needs – And When It Might Come
Chris Wright and his colleagues are united on one point: the path to lower prices is through resolving the Iran war. Every administration official who dealt with the issue linked the prospect of cheaper fuel with the end of the war.
