Fed Official Says Gas Prices Could Take Months to Fall After Hormuz Reopen

A Federal Reserve official said gasoline prices could take months to decline even after the Strait of Hormuz reopens. The statement points to the time required for crude shipments to reach refineries and for inventory levels to adjust before pump prices reflect improved supply.

Officials noted that physical delivery of oil through the reopened waterway does not immediately translate into lower wholesale costs. Refineries must first process the crude and distribute finished products through existing pipelines and terminals before retail stations see price relief.

Traders reacted to the comments by adjusting near-term fuel contracts, reflecting expectations of a slower return to lower prices. The remarks underscore how geopolitical events affecting major shipping lanes can influence energy markets beyond the immediate reopening of routes.

“Could take months for gas prices to fall even when Strait of Hormuz is reopened.”