Global Economy — 2026-04-19

US Energy Secretary says gas prices unlikely to fall below $3 until 2027 as Hormuz disruption persists

Energy Secretary Chris Wright told CNN that a return to sub-$3 pump prices could slip into 2027, attributing the elevated $4.05-$4.10 national average directly to Strait of Hormuz instability rather than domestic output. Pre-war (February) prices averaged $2.98. Wright ruled out a reopening until Iran signs a deal. An NBC/SurveyMonkey poll released Saturday put Trump's approval at 37% with 68% disapproving the economy, making the prolonged price-pass-through a central GOP liability heading into the November midterms.

Analysis
Wright's on-camera acknowledgment that sub-$3 gasoline may not return until 2027 converts analyst consensus into an administration concession, hardening the midterm exposure the NBC/SurveyMonkey poll (37% approval, 68% economic disapproval) already flagged. His explicit linkage of the price floor to Hormuz status, not domestic output, signals Washington cannot rebuild pre-war price levels unilaterally, a five-week confirmation that Trump's March ultimatum produced no quick reopening. That constraint very likely tightens the administration's incentive to accept an imperfect Iran deal within the next 60 days, before early-voting windows open in key Senate races. Wright may instead be managing down expectations to cushion against worse outcomes, with prices softening faster if any de-escalation signal emerges from the Islamabad session, but the political calendar makes a face-saving framework the more probable near-term move.
3 sources
  1. Energy Sec: $3 Gas Might Not Return Until 2027 — A Blow for Midterm Voters - Newsweek
  2. Wright: Gas prices dropping to less than $3 might not happen until next year - The Hill
  3. Wright says Strait of Hormuz will not reopen until Iran deal is reached - The Hill

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