Economist Mohamed El-Erian has warned that the national average price of gas in the U.S. will hit $4/gallon by the end of July amid escalations between the U.S. and Iran, as well as uncertainty over the Strait of Hormuz.
Oil Moving Higher Will Cause Gas, Diesel Spike
Taking to the social media platform X on Tuesday, the economist said that he had been asked about gas prices in the U.S. if oil rises in the global markets. “We’ll see regular retail gasoline rise back above $4.00 a gallon, and diesel above $5.00, both before the end of this month,” if prices remain high.
I've been asked what happens to US gas (petrol) prices IF, and it is a big if, international oil prices remain at current levels or move higher.
— Mohamed A. El-Erian (@elerianm) July 14, 2026
The answer: We'll see regular retail gasoline rise back above $4.00 a gallon, and diesel above $5.00, both before the end of this… pic.twitter.com/UGdp7vc75e
Oil futures surged following escalating tensions. The West Texas Intermediate (WTI) crude recorded a 2.00% surge, trading at $80.93/barrel at press time.
Brent crude futures, on the other hand, reached $86.51/bbl at the time of writing this article. Oil ETF United States Oil Fund (NYSE:USO) surged 3.18% to $121.51 during pre-market trading on Wednesday.
GOP Blames Democrats’ Clean Energy Strategy
Amid elevated gas prices the Republican Party slammed Democratic Party lawmakers. “Democrats gave us $5 gas by design,” the Senate GOP lawmakers’ handle said in a post on X on Tuesday.
“Their green energy policies caused prices to skyrocket over 9%,” the post said. “Senate Republicans are cutting taxes and unleashing American energy to provide relief for American families,” the handle said.
Democrats gave us $5 gas by design.
— Senate Republicans (@SenateGOP) July 15, 2026
Their green energy policies caused prices to skyrocket over 9%.
Senate Republicans are cutting taxes and unleashing American energy to provide relief for American families. pic.twitter.com/Zw1RCvRhGu
Data collected by the American Automobile Association (AAA) showed that the national average price for a gallon of gas was $3.890 on Wednesday. Diesel was at $4.9380/gallon, up from Monday’s $4.8820/gallon.
One Big Beautiful Bill’s Impact
The BlueGreen Alliance, a non-profit organization based in Minneapolis, says the Trump administration’s pro-fossil fuel stance has caused a nearly $83 billion loss in the clean energy sector in the U.S., as well as costing hundreds of thousands of jobs.
Trump’s $7,500 Federal EV Credit rollback impacted clean energy mobility negatively, with manufacturers like General Motors Co. (NYSE:GM) and others scaling down EV development efforts.
On the other hand, Gov. Gavin Newsom (D-CA) announced a new statewide EV rebate program, offering $3,500 off on new EVs for all first-time buyers in the state, saying that the move was to fill the void left by Trump’s anti-EV policies.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Photo courtesy: Shutterstock
