Iran War Keeps U.S. Gas Prices High as Wright Defends

The U.S. average gasoline price reached $4.29 on Sunday, up from $3.04 a year earlier, as Energy Secretary Chris Wright defended the Trump administration’s promise to lower fuel costs with the Iran war in its eighth month. Prices topped $5 in several western states, and some stations around Los Angeles charged more than $7.

Wright told CNN the administration hadn’t broken its promise, despite his earlier prediction that prices would fall “within weeks, not months.” Dana Bash asked whether the administration had let Americans down while prices stayed high. “No, we haven't,” he replied.

Prices and Promises

AAA put the average at $5.39 in Washington, $5.40 in Nevada, $5.63 in Hawaii and $6.18 in California. The national average remained above its level a year earlier, and prices in those western states climbed higher still.

Wright said he had predicted in March that active attacks would end in “four or five or six weeks.” He said they did. He also said gasoline prices came down and “never got remotely close to $5 a gallon, over $5 a gallon.”

Bash asked whether Wright felt comfortable with gasoline prices. “No, of course I'm not comfortable but I'm happy they're coming down,” he said. Wright added that gasoline and diesel prices had fallen in recent weeks and would keep dropping. “That's what President Trump works on every day,” he said.

Wright’s forecasts have shifted. In March, he predicted gas prices would drop below $3 by summer, while adding there were “no guarantees.” In April, he said they might not fall below $3 until 2027. Trump criticized that forecast, calling Wright “totally wrong.” By May, Wright said he was avoiding predictions about when prices would fall.

War and Fuel Supply

Wright linked his answer about fuel costs to Iran’s government and its nuclear ambitions. He told Bash that the Iranian government killed 30,000 to 40,000 of its own citizens in January, before the conflict, then asked: “Are you comfortable with a nuclear-armed Iranian regime that's in power right now?” He added, “I don't think anyone is comfortable with that.”

Earlier in October, Trump announced a diesel deal in which Russia would “immediately” supply 300,000 tons to the United States and the global marketplace. Russia is due to deliver another 500,000 tons in November. The announcement followed rising diesel costs; AAA estimated the U.S. average at $6.53.

Questions Over the Russian Deal

Lawmakers from both parties criticized the deal after approving a sanctions package against Russia over its war with Ukraine. The diesel announcement drew criticism against the backdrop of those sanctions.

Some experts questioned whether Russian diesel would make a significant difference to U.S. prices. Isabelle Gilks, principal analyst for retail fuels at Wood Mackenzie, said the announced volumes were “a small fraction, less than 5 percent, of U.S. diesel demand over the next few months.” She said they “should have very limited impact on U.S. retail prices.”