"An analysis led by economists at the Stanford Institute for Economic Policy Research found that should the Strait of Hormuz remain closed for another three weeks and oil top out at $110 per barrel in March, gas would peak at $4.36 per gallon in May. As a result, the report found Americans would be paying on average $740 more for gas this year."
"Gas prices have surged more than 90 cents since Feb. 28, to $3.91 per gallon, when President Donald Trump initiated a major military operation against Iran, in a joint effort with Israeli forces. The ongoing strikes and counterattacks have resulted in the effective closure of the Strait of Hormuz."
"Oxford Economics analysts similarly calculated that consumers would spend $60 billion more on gas in 2026, should gas prices average out to $3.60 per gallon, 'almost exactly offsetting the boost from refunds.'"
The White House announced a significant tax refund season, attributing it to the One Big Beautiful Bill Act. However, economists warn that rising gas prices, driven by the war in Iran, could offset these refunds. An analysis predicts that if oil prices reach $110 per barrel, gas could peak at $4.36 per gallon, leading to an average increase of $740 in gas expenses for households. This increase would effectively cancel out the projected $748 tax refund benefit, disproportionately affecting lower- and middle-income consumers.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]