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Gas Prices · Geopolitics · Inflation · Oil Market
An eleventh-hour truce between the U.S. and Iran immediately eased geopolitical tensions, but Americans face continued high fuel costs, with the national average for regular gas at $4.16 per gallon, up from $2.98 before the conflict.
Energy experts, including Patrick De Haan of GasBuddy, predict prices at the pump will start dropping this weekend, with the national average falling below $4 a gallon in a couple of weeks if the situation holds. AAA data shows current prices are up 91 cents from a year ago, with some states exceeding $5 a gallon and diesel averaging $5.67.
Global oil prices fell below $95 a barrel on Wednesday, still sharply elevated from the $65 to $75 range before the late February conflict. Bernard Yaros, lead U.S. economist at Oxford Economics, anticipates gas prices will stabilize or go lower if the ceasefire sticks, depending on the global energy market's perception of safety in the Strait of Hormuz.
Iranian media reports state Tehran is suspending tanker traffic, though White House press secretary Karoline Leavitt confirms these reports are false. Mark Zandi, chief economist at Moody's Analytics, forecasts gas will retreat to around $3.75 a gallon if oil stabilizes at $90 per barrel, further dropping to $3.50 by year-end with oil at $80 a barrel, but he expects no return to sub-$3 levels for a while.
