Fed official warns gas prices could take months to fall after Strait of Hormuz reopens

May 21, 2026, 4:40:56 PM UTC(2 hours ago)

Impact: Medium

Affected Assets

Richmond Fed President Thomas Barkin indicated that resolving the supply chain disruptions from the Strait of Hormuz blockade will not immediately lower retail fuel costs
The Pentagon estimated that returning normal shipping traffic to the strait could take up to six months after the conflict concludes
Energy experts noted that clearing trapped vessels, repairing damaged infrastructure, and replenishing depleted inventories will delay price relief at the pump
The ongoing blockade has pushed average U.S. gasoline prices above 4.50 dollars per gallon, costing American consumers an estimated 45 billion dollars since the conflict began

FED'S BARKIN: COULD TAKE MONTHS FOR GAS PRICES TO FALL EVEN WHEN STRAIT OF HORMUZ IS REOPENED