US Gas Prices Tied to Iran Conflict, Strait of Hormuz Reopening

Treasury Secretary Scott Bessent told reporters at a White House news conference on Wednesday (local time) that the timing of lower gas prices remained uncertain, citing disruptions in global oil flows linked to tensions involving Iran.

"I'm optimistic that sometime between June 20th and September 20th, we can have $3 gas again," Bessent said, while noting that outcomes would depend on how negotiations evolve.

He said the Strait of Hormuz had not been "completely reopened," adding that energy markets would stabilise once shipping lanes return to normal operations.

Bessent said discussions with Middle Eastern finance ministers indicated that oil production could resume quickly once conditions improve. "Once the Straits are open, they can start pumping again within one week," he said.

The administration said it was closely monitoring fuel pricing behaviour, urging retailers to pass on reductions as crude prices ease.

White House Press Secretary Karoline Leavitt said current price pressures reflected a broader strategic effort tied to the Iran situation.

"This is a short-term disruption for the long-term strategic goal of the United States," she said, referring to efforts to prevent Iran from obtaining a nuclear weapon.

Leavitt said the administration expected fuel prices to decline once operations conclude and the Strait reopens, pointing to the government's focus on domestic energy production.

Bessent described the approach as "short-term volatility for long-term gain," suggesting that temporary economic strain was part of a wider strategy.

The administration also highlighted efforts to stabilise global energy flows, including coordination with allies and regional partners.

- IANS