U.S. Energy Secretary Says Energy Prices Are Unpredictable as Iran War Drags On

[Financial News] U.S. Secretary of Energy Chris Wright, who has revised his outlook for U.S. gasoline prices several times, said he can no longer predict prices. He added that the effects of the Iran War are lasting longer than expected, and that the administration is also reviewing a temporary exemption from fuel taxes.
Appearing on NBC on the 10th local time, Wright said, "I cannot predict energy prices in the short term or the long term." In March, he had said there was a strong chance gasoline prices would fall below $3 per gallon by summer. Last month, however, he said the timing of a price drop could be delayed until 2027, prompting U.S. President Donald Trump to publicly push back, saying Wright was "completely wrong." Wright argued on the 10th that "the military phase of the conflict was largely as expected, but negotiations have continued after the main military operations ended." He explained, "We are using economic leverage against Iran, and the Iranian regime is trying to hold on to its nuclear program, so this phase is taking longer than expected."
According to the American Automobile Association (AAA), the average U.S. gasoline price stood at $4.522 per gallon on the 10th. That was up from just $2.98 per gallon on February 26, two days before the United States attacked Iran, the world's sixth-largest oil producer. Oil prices rose further as Iran tightened its control over the Strait of Hormuz, through which about 20% of global maritime oil shipments had passed.
When asked whether the average gasoline price could exceed $5, Wright replied, "I won't make a price forecast." He added, "But the United States is in a great position," stressing that the country produces oil and natural gas.
In March, Democrats introduced a federal bill to temporarily suspend fuel tax collection in an effort to curb surging gasoline prices after the attack on Iran. Asked whether he supported a temporary suspension of fuel taxes, Wright said, "The Trump administration is working to lower fuel prices and inflation, and it can take any action it deems necessary." When asked whether Trump was considering a fuel tax suspension, he said, "We are open to all options, and everything comes at a cost." According to the U.S. Energy Information Administration (EIA), the current federal fuel tax is 18.3 cents per gallon for gasoline and 24.3 cents per gallon for diesel.
West Texas Intermediate crude oil (WTI) and Brent crude oil futures rose about 3% as the U.S. market opened that day. Iran also delivered its response to the U.S.-proposed ceasefire plan to Pakistan, the mediator in the truce talks. On the same day, Trump wrote on Truth Social, "Unacceptable."


pjw@fnnews.com Park Jong-won Reporter