Kevin Hassett has suggested that U.S. gasoline prices could potentially fall to $3 per gallon, despite current prices being influenced by geopolitical tensions involving Iran. As of July 13, 2026, the national average for gasoline stands at $3.87 per gallon, while the Energy Information Administration (EIA) reports an average of $4.05 per gallon. The ongoing conflict and subsequent closure of the Strait of Hormuz by Iran have significantly impacted global oil supply, pushing Brent crude prices above $100 to $120 per barrel. These developments have introduced a risk premium, complicating predictions about future gasoline prices.
Key Takeaways
Hassett’s statement suggests a potential decrease in gasoline prices, impacting market expectations for crude oil highs.
Current market conditions, affected by Middle Eastern tensions, have elevated crude oil prices, complicating forecasts.
Markets appear to see the potential for a decrease in crude prices as consistent with Hassett’s outlook, affecting the probability of new highs.
