Oil prices will drop after Iran war ends ‘in the next few weeks,' Energy Secretary Chris Wright says

Core Viewpoint - Energy Secretary Chris Wright anticipates that gas prices will remain elevated for the next few weeks due to ongoing disruptions but is optimistic that prices could fall below $3 a gallon by summer [1][6]. Gas Prices and Market Conditions - Current national average gas prices are $3.69 per gallon, having been below $3 prior to the outbreak of the war in Iran [1]. - Wright noted that gasoline prices had previously approached $5 per gallon during the Biden administration, but he does not expect a repeat of that scenario this time [5][7]. Oil Prices and Future Projections - Oil prices have been around $100 per barrel since the U.S. military action against Iran's Kharg Island, a key oil export hub [6]. - Wright expressed confidence that once the conflict in Iran concludes, there will be a rebound in oil supplies and a subsequent decrease in prices [7]. Geopolitical Factors and Supply Chain - Iranian officials have warned that oil prices could rise to $200 per barrel due to tensions in the Strait of Hormuz, a critical passage for global oil transport [7]. - Wright dismissed these warnings, emphasizing that significant energy flows through the Strait and that military actions are being taken to ensure its safety [8][11]. Strategic Responses - The International Energy Agency (IEA) plans to release 400 million barrels of oil to stabilize the market [8]. - The Trump administration is set to release 172 million barrels from U.S. oil reserves, which would lower emergency supplies to the lowest level since 1982 [10].