Moody's Analytics Chief Economist Mark Zandi rejected President Donald Trump's repeated claims that gas prices will fall "rapidly" when the Iran war comes to an end. Instead Zandi warned pre-war prices may never return.
"I don't think we're going back to the pre-war prices for the foreseeable future," explained Zandi, adding, "Certainly won't be this year, won't even be next year, might not be ever."
National average gas prices have exceeded $4 per gallon and are forecast to reach $6 by Summer as Iran continues to restrict access to critical shipping routes.
Surging oil prices have also driven up food costs, compounding inflation from Trump's tariff and immigration policies.
Oil market researcher Rory Johnson warned the world is only beginning to experience fuel shortage strains, with pressures escalating as the war continues. Dow Inc.
CEO Jim Fitterling explained it would take 250-275 days for markets to recover, comparing the timeline to COVID supply chain disruptions.
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