US Energy Chiefs Says Gas Prices Have Peaked, But Will Stay Above $3 Until Next Year

On Sunday, U.S. Energy Secretary Chris Wright said that while gas prices have peaked and shouldn't go any higher, they'll remain above $3 per gallon until next year, according to Reuters. 

Gas Prices Peak With US-Iran War

Gas prices have been rising since the start of the US war on Iran. Oil prices went above $100 after the US and Iran failed to make a deal last weekend, and the soaring fuel costs are causing airlines to upcharge checked-bag fees, and some, like Spirit, are set to potentially liquidate. 

When asked if gas would go below $3, Wright said gas below $3 a gallon "could happen later this ​year, that might not happen until next year. But prices have likely peaked, and ​they'll start going down,” he said on CNN’s "State of the Union" show. "Certainly with the ⁠resolution of this conflict, you’ll see prices go down."

Conversely, Treasury Secretary Scott Bessent thinks they could go down to $3 per gallon this summer. As for President Donald Trump, he mentioned they could remain elevated until November, which is right around the midterms. 

"Under $3 a gallon is pretty tremendous in inflation-adjusted terms," Wright said. "We'll get ​back there for sure."

Fuel Price Outlook and Upcoming US-Iran Negotiations

According to AAA estimates, per Reuters, the average price for a gallon of regular gas was $4.05, up from $3.16 a year ago. 

Speaking of jet fuel, as mentioned above, US Transportation Secretary Sean Duffy believes it will become more plentiful as the conflict begins to fade.