Commodities April 19, 2026 10:36 AM

U.S. Energy Secretary Says Gasoline Likely Has Peaked; Prices May Stay Above $3 Until Next Year

Chris Wright expects downward pressure once the Iran conflict is resolved, but timelines from administration officials differ

By Leila Farooq
U.S. Energy Secretary Says Gasoline Likely Has Peaked; Prices May Stay Above $3 Until Next Year

U.S. Energy Secretary Chris Wright told CNN on Sunday that gasoline prices have likely reached their high point but may remain above $3 per gallon until next year. Administration figures have given varying timetables for when prices could fall, and ongoing tensions linked to the U.S. and Israeli war on Iran, along with reported Iranian attacks, continue to complicate near-term outlooks. The national average for regular gasoline was estimated at $4.05 a gallon on Sunday, versus $3.16 a year earlier.

Key Points

  • Energy Secretary Chris Wright believes gasoline prices have likely peaked but may stay above $3 per gallon until next year - impacting consumer spending and transportation costs.
  • Administration officials offer differing timelines: Treasury Secretary Scott Bessent expects prices could drop to around $3 this summer, while President Trump has said prices may stay high until November - creating uncertainty for markets and election dynamics.
  • The U.S. and Israeli war on Iran and reported Iranian attacks on nearby countries have contributed to the recent rise in gas prices; a ceasefire was agreed on for 10 days but has been accused of being violated, keeping geopolitical risk elevated.

WASHINGTON - U.S. Energy Secretary Chris Wright said on Sunday he believes retail gasoline prices have reached their peak, but he cautioned that prices could remain above $3 per gallon until next year.

Speaking on CNN's State of the Union program, Wright said lower prices "could happen later this year, that might not happen until next year. But prices have likely peaked, and theyll start going down." He added that "Certainly with the resolution of this conflict, youll see prices go down."

Gasoline costs have climbed amid the U.S. and Israeli war on Iran and reported Iranian attacks on nearby countries, a trend that has created political challenges for President Donald Trump ahead of the November midterm elections. The Republican Party will be defending slim majorities in both the Senate and the House of Representatives.

Other figures in the Trump administration have offered different timelines for when pump prices might retreat. Treasury Secretary Scott Bessent last week said he expected prices to fall to the $3 per gallon area this summer, while Wright described a longer path back to that level. The president himself has suggested that gasoline prices may remain elevated through November.

Wright underscored the broader view the administration shares: once the conflict with Iran ends, gasoline should ultimately become cheaper. He said, "Under $3 a gallon is pretty tremendous in inflation-adjusted terms. Well get back there for sure."

Industry price tracking showed the average cost for a gallon of regular gasoline at $4.05 on Sunday, according to an estimate by AAA. That compares with an average of $3.16 a year earlier.


Recent diplomatic and security developments

The United States and Iran agreed to a 10-day ceasefire on Thursday. However, President Trump on Sunday accused Iran of breaching that pause by carrying out attacks on ships in the Strait of Hormuz over the weekend. In a social media post, he said U.S. officials will arrive in Pakistan for further negotiations on Monday.

In the same post, the president reiterated previous warnings, writing, "Were offering a very fair and reasonable DEAL, and I hope they take it because, if they dont, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran."


Implications

The comments from Wright and other administration figures highlight differing expectations within the U.S. government about how quickly gasoline prices may decline. Market participants and consumers will be watching both developments on the diplomatic front and any subsequent shifts in supply or demand that could affect pump prices.

For now, official statements stress that a resolution to the Iran conflict would be the key element likely to push prices lower.

Risks

  • Continued hostilities or further attacks linked to the Iran conflict could sustain elevated gasoline prices - affecting the oil and transportation sectors.
  • Disagreement in timing among administration officials on when prices will fall introduces policy and market uncertainty - affecting consumer confidence and energy markets.
  • Accusations of ceasefire violations and renewed tensions could delay the return of lower prices, keeping inflationary pressure on household budgets and sectors sensitive to fuel costs.

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