Trump Administration Forecasts Long-Term High Gas Prices From Strait of Hormuz Closure
NOTUS • • business
Key Points:
- The U.S. Energy Information Administration (EIA) forecasts that gasoline prices will peak at about $4.30 per gallon in April and remain above $3.70 per gallon for the rest of the year, assuming the Iran conflict ends by April’s end.
- The EIA struggles to predict market responses due to uncertainties around the closure and potential reopening of the Strait of Hormuz, with full restoration of oil flows expected to take months.
- Diesel prices are expected to rise even more sharply, with a projected peak over $5.80 per gallon in April and an average of $4.80 for the year, impacting shipping costs and consumer prices.
- President Donald Trump has issued escalating threats related to the Strait of Hormuz conflict, demanding its reopening and warning of severe consequences if no resolution is reached by his specified deadlines.
- The EIA did not provide price forecasts if the conflict and strait closure persist beyond April, highlighting significant uncertainties in the energy market outlook.
