Chris Wright reveals when gas prices will to drop below $3 a gallon— says Iran War price hikes ‘peaked’

Energy Secretary Chris Wright stated on Sunday that gas prices likely reached their peak about a week ago and should gradually decrease in the coming weeks as the conflict in Iran nears its end.

“Bringing an end to this 47-year conflict and preventing Iran from obtaining nuclear weapons has caused some short-term disruptions. However, I believe we have managed it exceptionally well,” Wright told CNN’s “State of the Union.”

“Despite facing the largest disruption in energy flow ever, gasoline prices peaked a week ago, approximately one dollar lower than the peak during the Biden administration.”

Earlier this month, average gas prices hit $4.16, according to an analysis from GasBuddy. This is still below the record $5.01 per gallon in June 2022. Following the onset of the conflict in Iran, member countries of the International Energy Agency agreed to release 400 million barrels of oil to stabilize markets.

Wright suggested that it might take until next year for gas prices to drop below $3 per gallon again, emphasizing that this price range is significant in inflation-adjusted terms.

Nationally, gas prices are currently at $4.04, as per the latest data from the American Automobile Association.

“While reaching $3 per gallon may not happen until next year, it is likely that prices have reached their peak and will begin to decline. With the resolution of the conflict, we can expect prices to decrease,” Wright stated.

President Trump has urged countries reliant on oil passing through the Strait of Hormuz to buy oil from the US to mitigate the global energy crisis. The Trump administration has eased some sanctions on Russian energy, but Wright emphasized that this is only a temporary measure.

Over 20% of the world’s seaborne oil supplies pass through the Strait of Hormuz annually, with the US accounting for about 2.5% of these supplies under normal circumstances. China receives over a third of the oil, while India, South Korea, and Japan also depend significantly on it. The interconnected nature of oil markets means that the crisis in the region affects the US.

The US and Iran have agreed to a two-week cease-fire, set to conclude on Wednesday. Trump mentioned that special envoys Steve Witkoff and Jared Kushner will be sent to Pakistan to negotiate a peace agreement with Iran.

Iran has disrupted oil flow through the Strait of Hormuz by launching sporadic missile and drone attacks on ships in the region. In response, Trump has imposed a comprehensive blockade on Iranian vessels attempting to pass through the strait to increase pressure on Iran.

“Once a deal is reached – which won’t be too far off – preparations are in place. US warships have been deployed in the strait. We have the capability to reopen it one way or another,” Wright commented.

“However, the best course of action is to end the conflict and disarm Iran.”