Trump energy secretary forecasts high gas prices until 2027

The U.S. Secretary of Energy, Chris Wright, acknowledged during a CNN interview that gas prices might not fall below $3 a gallon until 2027. When pressed by Jake Tapper about the timeline for a return to lower prices, Wright responded, "I don’t know. That could happen later this year. That might not happen until next year." He noted that prices have likely peaked and will start to decline, attributing potential decreases to the conclusion of the ongoing war in Iran, which began in late February.

Wright's comments come as the average price of gasoline has surged to $4 a gallon, up from $2.98 before the conflict. He emphasized that while prices were lower during the Trump administration, they had not been seen in inflation-adjusted terms for a long time. Donald Trump, who campaigned on lowering gas prices, had promised to bring them below $2 a gallon during his 2024 campaign. However, recent polling indicates significant public disapproval of Trump's handling of both the Iran war and domestic inflation, with 67% to 68% of respondents expressing dissatisfaction.

Wright's statements mark a shift from earlier predictions he made in March, where he suggested a good chance for prices to drop below $3 by summer. The ongoing geopolitical tensions, particularly the closure of the Strait of Hormuz by Iran, have exacerbated the situation, leading to expectations of higher costs across various sectors. The administration's energy policies are now under scrutiny as public sentiment turns against them amid rising living costs.

What to watch: The potential impact of the Iran conflict on global oil supply and subsequent U.S. gas prices in the coming months.