US Gas Prices May Stay Above $3 through 2027, Says Sec. Energy

U.S. Energy Secretary Chris Wright said on Sunday that gasoline prices in the United States may have already peaked, but are likely to remain above $3 per gallon through at least next year, as global energy markets continue to be shaped by geopolitical instability.

Speaking on CNN’s State of the Union, Wright noted that while prices could eventually fall below the $3 threshold, such a decline may not materialize until late this year or even 2027. “The likely scenario is that prices have already peaked and will begin to ease,” he said, adding that resolution of the ongoing conflict would be key to sustained relief at the pump.

The comments come as average U.S. gasoline prices remain elevated. According to the American Automobile Association, the national average stood at $4.05 per gallon on Sunday, significantly higher than $3.16 a year earlier.

Fuel prices have surged amid the broader conflict involving the United States and Iran, following military escalations and retaliatory strikes across the region. The tensions have disrupted energy flows and heightened concerns over key shipping routes, including the strategically vital Strait of Hormuz.

The situation has also created political pressure domestically, as rising fuel costs become a sensitive issue ahead of upcoming elections, where the ruling Republican Party is defending narrow majorities in Congress.

Policy signals within the U.S. administration have shown some divergence. Treasury Secretary Scott Bessent recently suggested that gasoline prices could fall toward the $3 range by the summer. However, Wright indicated a more extended timeline, emphasizing that sustained declines depend on geopolitical stabilization.

President Donald Trump has also suggested that prices may remain elevated until November, while expressing confidence that a post-conflict environment would eventually bring relief.

Although a 10-day ceasefire between the United States and Iran has been announced, tensions remain high. Reports of continued incidents in the region, including alleged attacks near maritime corridors, have raised doubts about the durability of the truce.

The uncertainty continues to ripple through global energy markets, reinforcing volatility in oil prices and shaping expectations for inflation and transport costs worldwide.

Wright stressed that a lasting resolution to the conflict would be essential for meaningful price relief. “Once this dispute is resolved, you will see prices come down,” he said, underscoring the direct link between geopolitical stability and energy affordability.