Summary
A new study from Stanford University suggests that rising gas prices, due to the conflict in Iran, could cancel out larger tax refunds that many Americans are expected to receive under President Donald Trump's tax plan. Gas prices have increased nationwide, affecting household expenses, and are projected to remain high as long as the conflict and disruptions in the Strait of Hormuz continue.
Key Facts
- The Iran conflict began after U.S. and Israel's joint strikes on February 28, affecting the Strait of Hormuz.
- The increase in crude oil prices has led to higher gas prices in the U.S., rising over one dollar per gallon in a month.
- The average national gas price was $3.977 per gallon, up from $2.951 a month prior.
- Stanford economists predict a typical U.S. family will spend $68 more on gas this month and an additional $740 over the year.
- President Trump's tax plan promised large tax refunds, with an average increase of about $360 according to IRS data.
- Households that drive less, or use electric vehicles, will be less affected by rising gas prices.
- The possible outcome of the study depends on how the situation in the Strait of Hormuz develops.
