President Trump believes gas prices will fall below $3 per gallon this year and expects the decline to begin as soon as the U.S.-Iran war ends. The average price of a gallon of gas in the U.S. has soared $1.06, or 35%, since the start of the conflict on February 28.
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New trading tool for QQQ bullsEarlier today, Energy Secretary Chris Wright warned that gas could stay above $3 until 2027. “No, I think he’s wrong on that. Totally wrong,” Trump said when asked by The Hill about Wright’s statement.
Oil Surges After U.S. Seizure Of Iranian Vessel
Brent crude oil futures (BZ) are up by over 4% on Monday after the U.S. seized an Iranian-flagged vessel traveling through the Strait of Hormuz. The waterway, which handles roughly 20% of global oil flows, has remained at a near standstill for over a month, creating a global supply shock.
If Brent falls, it will take between three and four weeks for the drop to reflect in gas prices, according to David Doherty, head of natural resources research at BloombergNEF. It’s worth noting that the relationship is also impacted by other factors, including refining costs, supply chains, and seller markups.