Trump Administration Energy Secretary Says Gasoline Prices Could Stay Above $3 Per Gallon “Possibly Until Next Year.”
U.S. Energy Secretary Chris Wright stated on Sunday that gasoline prices in the country may not fall below $3 per gallon again until 2027.
His remarks came amid renewed tensions in the Strait of Hormuz, through which nearly one-fifth of the world’s fuel and crude oil supply normally flows.
In the strait, the United States seized an Iranian vessel, and Iran threatened “retaliation” just before both sides were scheduled to meet for possible peace negotiations in Pakistan.It remains unclear whether those talks will still take place.
In response to the situation, international oil prices surged by more than 7% on Sunday, reaching nearly $90 per barrel, while stock markets declined. Natural gas prices also rose by 4%, along with the cost of aviation fuel.
That erased the gains seen on Friday, when Iran initially announced it would reopen the passage through the strait, before later stating that it would shut it down again, arguing that the United States had violated the ceasefire through a naval blockade.
In this context, Secretary Wright was asked during a CNN appearance when fuel prices might begin to decline again, given that the recent surge is affecting everyday consumers across the country.
“I don’t know — it could happen by the end of this year, or perhaps not until next year,” Wright said, adding that, in his view, “prices may have already reached their peak” for now.
The national average gasoline price in the United States is currently around $4 per gallon, according to AAA data, although in states such as California it has climbed to as high as $5.80.
Wright also told CNN that he agrees with U.S. President Donald Trump’s view that the Strait of Hormuz can be reopened if Iran attempts to keep it closed.
“We can reopen it one way or another, but the best solution is to bring the conflict to an end,” he said, referring to the ongoing diplomatic talks.
Those negotiations, however, now appear to be hanging by a thread following Sunday’s developments.
If the talks — which Pakistan has been mediating — are not resumed, it remains unclear whether the ceasefire announced by Iran and the United States on April 8 can be extended. The original ceasefire deadline expires on Wednesday.
Source: NBC News and EFE
https://www.telemundo.com/noticias/noticias-telemundo/economia/precio-del-petroleo-sube-ante-renovadas-tensiones-en-iran-rcna340914
