Gas prices in the U.S. could surge if a definitive agreement isn’t reached between Washington and Tehran amid escalating tensions in the Middle East, according to GasBuddy analyst Patrick De Haan.
Gas Prices Could Rise
In a post on X on Sunday, De Haan shared that gas prices fell to the “lowest level in over a month” at $4.296/gallon. However, De Haan cautioned that gas prices could “once again spike” if there wasn’t “a deal with Iran” to reopen the Strait of Hormuz. “49 of 50 states are seeing lower prices vs a week ago,” the analyst said.
According to data from the American Automobile Association (AAA), the national average price for a gallon of gas declined to $4.322 on Monday, June 1st, slightly less than Sunday’s national average of $4.336/gallon. The national average for diesel was around $5.448/gallon.
Crude oil prices surged as the West Texas Intermediate (WTI) broke the $90 threshold again to $91.4/bbl at press time. Brent crude also grew 3.69% to $94.48/bbl at the time of writing this article. Oil ETF United States Oil Fund (NYSE:USO) that tracks WTI crude, grew 3.29% to 133.34 during the pre-market trading session on Monday.
Trump’s Iran Comments
The U.S. conducted another set of strikes in Iran in response to “aggressive Iranian actions,” including the shooting down of a US MQ-1 drone operating over international waters, according to the U.S. Central Command.
President Donald Trump urged people to “relax” and said that Iran was going to make a deal and that the deal would be beneficial for the U.S.
Ross Gerber’s Alternative Energy Suggestion
As uncertainty looms over the Strait of Hormuz, investor Ross Gerber opined that the situation in Iran has presented a “great opportunity” for the world to pivot away from oil and fossil fuels in favor of alternative sources of energy. Gerber said that such a pivot would make the Strait of Hormuz “meaningless.”
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