U.S. Energy Secretary Chris Wright warned Monday that oil prices could reach their peak in the coming weeks as the blockade of the Strait of Hormuz continues to disrupt global energy supplies.
The disruption in the vital waterway is driving energy costs higher, according to Wright. He expects the current upward trend to persist until significant maritime traffic can once again pass through the strait.
"We are going to see elevated energy prices, and perhaps even on the upswing," Wright said during the Semafor World Economy conference.
He predicted that prices will hit their "peak" once the blockage is resolved, a development he expects to occur "at some point in the next few weeks."
Impact on global markets
The volatility in the crude market is directly influencing consumer costs at the pump. Brent crude, the primary global benchmark, has climbed approximately 40% since the onset of the war.
On Monday, oil prices moved closer to the $100 per barrel mark. This surge follows a period of relative stability that many hoped would lead to lower costs for motorists.
The relationship between crude oil and gasoline remains tight, as oil prices serve as the primary factor determining what drivers pay at the pump.
Just one month ago, Wright expressed optimism regarding domestic fuel costs. He stated there was "great possibility" that Americans would see gasoline prices drop to at least $3 per gallon by the summer.
That outlook has shifted due to the current geopolitical situation. Wright, echoing sentiments from President Donald Trump, warned Monday that gasoline prices are likely to remain elevated for several months.
