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Economyabout 5 hours ago· 1 min read

Gas Prices Expected to Remain Elevated for Months Due to Iran War

Economists warn it could take months for U.S. gas prices to return to pre-war levels as global oil supplies remain disrupted by the ongoing Iran conflict. Energy experts say the impacts will persist even if peace talks eventually succeed.

Price Recovery Timeline

It could take months for U.S. gas prices to recede to their level before the outbreak of war in Iran, economists and energy experts say.

Long-Term Global Impact

Europe will face a difficult summer of possible fuel shortages and other oil-related problems, and even the best case scenario will be tough, said Dan Jorgensen, the European Union Energy Commissioner. "I have to be quite blunt and say that even in the best case scenarios, it's not a very good good case," he said. Even if the Iran war ended today and the Strait of Hormuz fully reopened, "it'll take more than a couple of years to get back to the production levels that we have now."

Consumer Impact

Retail sales up a sharp 1.7% in March from February driven by a spike in gas prices due to the Iran war.

Sources

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