Gas prices may not drop under $3 until next year: Wright
CNBC • • business
Key Points:
- Energy Secretary Chris Wright stated that gas prices may not fall below $3 per gallon until next year due to ongoing conflict between the U.S. and Iran and the closure of the Strait of Hormuz.
- Wright noted that while prices have likely peaked, a resolution to the conflict would lead to lower energy costs.
- He emphasized that gas prices under $3 per gallon are significant in inflation-adjusted terms and were last seen during the Trump administration.
- The U.S. war with Iran has caused gas prices to spike, as Tehran's control over the Strait of Hormuz disrupts a vital oil shipping route responsible for about 20% of global oil transport.
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