Trump's Iran Comments Could Lower Gas Prices—But There's A Catch

GasBuddy analyst Patrick De Haan on Wednesday shared that he expects fuel costs in the U.S. to come down as President Donald Trump says talks with Iran are in the final stages.

National Average Price To Drop

In a post on X, De Haan shared that people could see “the national average start to drop tomorrow.” De Haan outlined that the reason behind the price drop could be because of “oil’s large selloff.” He also shared that prices could come down as states with cyclical gas prices were also selling off oil.

Gas prices with this pattern are prominent in states like Michigan, Illinois, Indiana, etc., where prices trend higher before coming down gradually, depending on the time of the year/week.

Trump’s Comments Could Have An Effect

De Haan then outlined that Trump’s comments about the situation in Iran have pushed “oil, gasoline, diesel and jet fuel prices to plummet.” However, prices could “likely surge next week” if the comments do not translate into the “reopening of the Strait [of Hormuz].”

Oil And Gas Prices

According to data from the American Automobile Association, the average national price of gas was $4.555/gallon on Wednesday. California had the costliest gas, with the state’s average being the highest in the country at $6.145/gallon. Meanwhile, Georgia had the cheapest gas at $4.006/gallon.

The West Texas Intermediate (WTI) crude oil grew 1.17% to $99.41/barrel at press time, while Brent crude surged 1.08% to $106.2/barrel. However, the United States Oil Fund (NYSE:USO) ETF declined 5.68% to $144.27 at market close on Wednesday, but grew 0.34% to $144.76 during the after-hours session.

Jim Cramer’s Warning, JB Pritzker Slams Trump

TV host Jim Cramer warned that oil could break its high of $119/bbl without a tangible peace agreement amid the Iran war, saying oil prices go "down less when Trump says there is a hint of peace." However, they go up significantly on rumors of escalations in the war, he said.

On the other hand, Governor Jay Robert ‘JB' Pritzker (D-IL) delivered sharp criticism of Trump following the latter’s comments about the Iran war taking precedence over rising cost-of-living issues in the U.S. "The President is out of touch and out of his mind," he said.

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