Related videos:
The U.S. Secretary of the Treasury, Scott Bessent, stated this Wednesday that he expects gas prices to fall to the three-dollar range per gallon during the summer, when today the national average sits at $4.108, according to the American Automobile Association (AAA).
Bessent's optimistic forecast comes amid an unprecedented surge in prices since 2022, driven by the closure of the Strait of Hormuz that Iran announced on March 4, 2026, in response to Operation Epic Fury, the joint attack by the United States and Israel launched on February 28.
The closure of the strait blocks approximately 20% of the world's oil, about 20 million barrels per day, and has caused the price of Brent crude to spike from the 67-70 dollars per barrel it was at before the conflict to over 100-126 dollars in April.
Gasoline in the United States cost less than three dollars per gallon in the first two months of 2026, before the onset of the conflict.
On April 11, it reached a recent high of 4.17 dollars, the highest level since 2022.
Bessent directly linked his forecast to the ongoing negotiations to reopen the Strait of Hormuz, noting that Middle Eastern countries indicated that they might start pumping again in a week after the reopening.
However, the secretary acknowledged that the timeline depends on how the negotiations progress with Iran, in a process that has yet to yield concrete results.
A preliminary round of talks led by Vice President JD Vance, Jared Kushner, and Steve Witkoff failed to reach an agreement this past Saturday, April 11.
The president Donald Trump announced a two-week ceasefire on Sunday, April 12, but the following day he ordered to block the strait following the failure of negotiations, which keeps uncertainty about when oil flows might normalize.
Bessent also warned that the White House will monitor gas stations to ensure that they lower prices quickly when crude oil falls, noting that the stations raised prices very quickly when crude oil rose.
The secretary described the current economic situation as short-term volatility for long-term gains.
Filed under: