President Trump stated that the Justice Department would be investigating the recent surge in gasoline prices. This comes as the national average price for gasoline is hovering above $4 per gallon, a significant increase from pre-war levels. Earlier, Trump had acknowledged that high gas prices could persist for "a little while," a shift from his previous dismissals of the issue.
Energy experts are largely in agreement that elevated prices are likely to continue throughout 2026. Rebecca Babin, a senior energy trader at CIBC Private Wealth, projects that average gasoline prices will remain above $3 per gallon for the entire year, even if the Strait of Hormuz is fully reopened this summer. Patrick De Haan of GasBuddy also forecasts prices between $3.35 and $3.95 throughout the summer months, considering efforts to open the strait.
The announcement from Trump, and the Justice Department's involvement, follows a period of volatile crude oil markets driven by developments in the Middle East, including a cease-fire extension between Israel and Lebanon. Despite a recent agreement between the U.S. and Iran to end hostilities and reopen the Strait of Hormuz, which saw gasoline prices fall to $4.06 per gallon from a peak of $4.56 in May, experts like Dan Pickering of Pickering Energy Partners do not expect prices to return to pre-war levels, stating that $2.85 gasoline is unlikely.
Prices had surged from less than $3 per gallon to the May peak after the U.S. and Israel began bombing Iran in late February. While crude oil futures have recently slipped below $80 a barrel for U.S. crude and $83 for Brent, experts caution that it could take months for oil to move normally, and futures indicate that oil prices may not fall below $70 per barrel until 2031. The Trump administration is also reportedly considering lifting summer gasoline regulations to curb energy prices.
