Treasury Secretary Scott Bessent told lawmakers Wednesday that high gas prices will not last long, but said the rate of price decreases will depend on how quickly the U.S. and Iran can end hostilities in the Middle East.
Americans are paying more at the pump — an average of $4 per gallon — this week compared to around $3 per gallon when President Trump launched his war on Iran on Feb. 28.
“I think the conflict will end, I think gasoline prices will come back to where they were or perhaps lower,” Mr. Bessent told the Senate Appropriations Committee. “President Trump has shown that he is good at getting energy prices down.”
Mr. Trump repeatedly pointed to the low cost of gas before the war. He contrasted $3-per-gallon prices to the all-time high of $5 per gallon in mid-2022 under President Joe Biden in the wake of the Russian invasion of Ukraine.
Now the tables are turned, with Mr. Trump and Republicans grappling with Americans’ gripes about higher fuel costs.
Mr. Bessent said the speed of price decreases depends on when the conflict ends.
“Well, from the perspective of the Armed Services Committee, it’s not likely to end soon,” said Sen. Jack Reed, Rhode Island Democrat and ranking member of the Armed Services Committee.
Mr. Trump on Tuesday said he would not attack Iran, despite the expiration of a two-week ceasefire, while officials in Tehran prepare a peace proposal for Pakistani mediators. Iran attacked foreign ships in the Strait of Hormuz on Wednesday, raising tensions, and the globe continues to grapple with energy shortfalls and high prices from the war.
Mr. Bessent on Wednesday defended the administration’s decision to grant sanctions relief on Iranian and Russian oil, saying it increased supply and alleviated global price pressures.
Sen. Chris Coons, Delaware Democrat, said he was disappointed by a recent extension in sanctions relief, after the secretary had suggested the relief would not be renewed.
The senator also said the U.S. should not be granting relief that could fund Russian President Vladimir Putin’s “war machine” as Moscow continues its invasion of Ukraine.
