Fuel Prices May Keep Rising Despite Hormuz Reopening

The US Energy Information Administration (EIA) has warned that fuel prices could continue to rise even if the Strait of Hormuz reopens. This contradicts President Donald Trump's assurances that consumers will see immediate relief once the war with Iran ends.

The EIA's short-term energy outlook report predicts global benchmark Brent crude oil spot prices will average $96 a barrel this year, up from their previous forecast of $78.84. US retail gasoline prices are expected to peak at an average of $4.30 a gallon in April and diesel prices at $5.80 a gallon.

The EIA attributed the continued price increase to uncertainty around future supply disruptions, which will keep crude oil prices above pre-conflict levels. Global oil demand growth has also been reduced due to reports of fuel shortages and government initiatives aimed at curbing fuel usage and exports.