Will gas dip below $3 a gallon this year? Here's what experts think.
Summary
Experts say that gasoline prices in the U.S. are unlikely to drop below $3 a gallon this year due to the ongoing conflict between the U.S. and Iran, which has disrupted oil supplies. While prices have recently eased from a peak above $4, fuel costs are expected to remain high for months because of damage to oil infrastructure and risks around a key shipping route, the Strait of Hormuz.Key Facts
- Gas prices rose above $4 a gallon after U.S. and Israel struck Iran on February 28.
- Before the conflict, the average gas price was about $2.98 per gallon.
- Oil shipments through the Strait of Hormuz, a crucial route, have been disrupted by the war.
- Experts expect gas prices to settle near $3.50 by the end of the year without a major economic shock.
- The "rockets and feathers" effect means gas prices rise quickly but fall slowly.
- It is unclear when the Strait of Hormuz will reopen fully, keeping supply tight.
- President Trump said gas prices will drop once the Iran conflict ends, but Energy Secretary Chris Wright gave a less certain timeline.
- Higher gas prices hit low-income families hardest, as they spend a larger share of income on fuel.
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