GasBuddy analyst Patrick De Haan says the national average price of gas in the U.S. could fall below $4/gallon by Labor Day as the war in Iran and the Russia-Ukraine conflict create uncertainty in global oil supply.
Gas Below $4 May Still Be the Most Expensive Ever
In a post on X on Wednesday, De Haan said that at the time of writing his post, the West Texas Intermediate (WTI) crude had fallen below $80/bbl and some states were “changing back to winter gasoline a couple weeks early” following the President Donald Trump administration’s Environmental Protection Agency (EPA) waiver.
“We likely have enough to see the national average fall below $4/gal by Labor Day,” De Haan said, but warned that “it [gas prices] may still be the most expensive ever” during this time of the year.
Oil And Gas Prices
At press time, WTI crude oil was trading at $81.84/bbl, while Brent crude was trading at $87.48/bbl. The United States Oil Fund (NYSE:USO), an oil ETF, slipped 0.09% to $127.23 during overnight trading on Wednesday.
On Wednesday, the national average price for a gallon of gas surged to $4.1014, while the national average for diesel was at $5.6230/gallon, according to data collected by the American Automobile Association (AAA).
Iran War, Trump Criticism
As the Trump administration touted economic restrictions on Iran, the country’s administration pushed back with Iran’s Foreign Ministry Spokesperson Esmaeil Baqaei saying that the restrictions were against international law and equated it to “systemic bullying” by the Trump administration.
Iran’s Security Chief had earlier said that countries participating in the restrictions would be undertaking an “act of war” against Iran and that there would be no flow of oil through the Strait of Hormuz.
On the other hand, Sen. Elizabeth Warren (D-Mass.) slammed Trump and accused him of profiting from the Iran war. The Massachusetts senator cited the President’s multi-million dollar holdings in oil companies like ExxonMobil Holdings Corp (NYSE:XOM), Chevron Corp (NYSE:CVX) and more.
Other Democratic Party leaders also criticized Trump for his handling of the war in Iran. Gov. Gavin Newsom (D-CA) also questioned Trump’s claim that the Strait of Hormuz was free of mines, citing an earlier claim made by the President last week.
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