The conflict between Israel and Iran, as well as Ukrainian drones attacking Russian oil refineries and OPEC holding back oil supply, raised concerns about $4 gas in the US. However, gas prices have stopped rising and even decreased slightly in recent days, with the national average at $3.66 a gallon. There is hope that gas prices have peaked for the spring or the year, with experts predicting relief at the pump in the coming weeks.
While gas prices are not classified as cheap, they are below the $4 mark in most states, with the national average not close to the record spike above $5 per gallon seen in June 2022. Officials in Washington are likely relieved by this development, as rising gas prices earlier this year have contributed to worse-than-expected inflation readings, casting doubt on when the Federal Reserve can lower interest rates. President Biden’s economic message has struggled, with low approval ratings for the economy and inflation.
While some analysts expect gas prices to increase slightly, others believe they have peaked for the year at $3.75 per gallon. Various factors contribute to the halt in rising gas prices, including the stabilization of oil prices following concerns about Iran’s retaliation against Israel. Seasonal factors such as the switch to more expensive summer-grade gasoline and increased refinery supply also play a role, as does the record US crude production offsetting production cuts by OPEC+.
There is a risk of a double peak in gas prices, as experienced last year, with a potential rebound in late summer due to extreme weather events such as hurricanes. Forecasters are predicting an active hurricane season that could disrupt oil refineries in the US Gulf Coast. Despite these risks, experts remain cautiously optimistic about gas price stabilization in the near future, with hopes that the worst is behind us in terms of gas price spikes.
