Economist Warns U.S. Gas Prices Could Remain High for Years Due to Global Supply Disruptions

Mon, 04 May 2026 11:45:00 +0200

Economist Henrietta Treyz, co-founder of Veda Partners and director of economic policy, provided a sobering forecast about the future of gas prices during a segment on MS NOW. When asked by anchor Alex Witt how long it would take for gas prices to decrease if a hypothetical end to Donald Trump's Iran war occurred, Treyz explained that supply chain issues would prevent a quick drop. She highlighted that tanker flows through the Strait of Hormuz, a critical route for one-fifth of the world’s oil, might not stabilize until September. Treyz also noted the dramatic 300% increase in tanker insurance costs and the destruction of 80 major refining and energy facilities, which will take years to rebuild. Based on current trends, she projected gas prices could reach $4.90 per gallon the following week and potentially surpass $5 by Memorial Day. Treyz emphasized that even after normal supply resumes, it could take years before prices drop to the levels Americans are accustomed to seeing before th