US President Donald Trump stated on Monday that once America wins its war with Iran, oil prices will "fall sharply," predicting gasoline prices would first drop to $3 per gallon and eventually dip below $2 per gallon. In a post on Truth Social, Trump wrote, "When we win the war with Iran, oil prices will fall sharply, just like all other commodities (and even more steeply). $3 per gallon, but eventually below $2 per gallon. All of this will happen soon, and Iran will never possess a nuclear weapon."
US gasoline prices have climbed to their highest level ever recorded for the Labor Day holiday period. The American Automobile Association (AAA) reported Monday that the national average price for regular gasoline stood at $4.15 per gallon, higher than the roughly $3.20 recorded during the same period last year, and well above the previous Labor Day record of $3.82 set in 2012. Diesel fuel prices have also surged to unprecedented heights, reaching $5.90 per gallon.
On Sunday, US Energy Secretary Chris Wright, when pressed during an interview, declined to guarantee that oil prices would continue to decline, merely noting that gasoline futures indicated "a greater likelihood of prices falling than rising." Treasury Secretary Scott Bessent projected that once the war concludes, crude oil prices could fall to between $40 and $50 per barrel, driven by an upcoming surge in supply. However, seasoned investor Peter Schiff dismissed this assertion, saying, "Don't believe anything this man says. I don't think he believes that rhetoric himself."
Iran conflict shows no clear signs of ending
On Monday, Iran's Parliamentary Speaker Mohammad Bagher Ghalibaf issued a warning that American oil and gas companies operating in the region continue to face significant risks. He posted on X platform, stating, "If you strike our assets, you will definitely be met with retaliation." Over the weekend, US Independent Senator Bernie Sanders called Trump's war on Iran "both illegal and highly destructive," attributing record-high Labor Day gasoline prices to the ongoing conflict. Massachusetts Democratic Senator Elizabeth Warren echoed this sentiment, stating that bringing an end to the conflict in Iran would help lower gasoline prices.