Trump rushes to tackle soaring gas prices, which have reached record highs during his administration

Trump Responds to Rising Gas Prices Amid Iran Conflict

This week, President Trump introduced several initiatives aimed at curbing the sharp increase in gasoline prices that followed his administration’s military actions against Iran. However, these measures have yet to produce significant results.

On Friday, Brent crude oil prices surpassed $90 per barrel, marking an almost 30% increase since the onset of the Iran conflict. Similarly, West Texas crude has climbed by nearly one-third.

American consumers are feeling the impact at the gas station, with average prices jumping from $2.98 per gallon last week to $3.32 by Friday, according to the American Automobile Association (AAA). Diesel prices have surged even more dramatically, as detailed in this report.

President Trump has attempted to downplay the political consequences of these price hikes, asserting that the oil market has “pretty much stabilized.”

Further reading: How to protect your money as Mideast turmoil fuels market volatility

A man fills up his car in Washington, DC this week as oil and gas prices soar due to the ongoing conflict with Iran. (REUTERS/Ken Cedeno)

While U.S. presidents have limited influence over global oil prices, they often face criticism when fuel costs rise. The recent surge has clearly caught the attention of Trump’s administration.

On Thursday night, Treasury Secretary Scott Bessent announced a temporary 30-day waiver permitting Russian oil shipments to India, describing it as a “stop-gap measure” intended to ease market pressure.

This action was limited in scope, applying only to crude oil already en route, and had little immediate effect. Brent crude prices rose another 5% in the 12 hours after the announcement.

Earlier in the week, Trump briefly slowed the price surge by revealing plans for risk insurance and naval escorts in the Strait of Hormuz. However, this relief was short-lived, and prices soon resumed their upward trend.

Analysts predict that elevated prices are unlikely to subside soon—a troubling prospect for Trump, who has frequently highlighted lower gas prices as a political achievement ahead of the upcoming midterm elections.

Further reading: How oil price shocks ripple through your wallet, from gas to groceries

Patrick De Haan, head of petroleum analysis at GasBuddy, predicted that gas prices could reach between $3.40 and $3.55 per gallon, and remarked on Friday that the current oil market situation was “chilling.”

Earlier this week, he noted that gas prices are now at their highest point during either of Trump’s terms in office.

According to AAA, the average price at the pump was about $3.13 the week Trump was inaugurated last year.

A New Challenge for Trump: Affordability Concerns

During an appearance on Yahoo Finance Thursday, Mark Zandi, chief economist at Moody’s Analytics, suggested that while the economy could withstand moderate price increases, the current environment—where many Americans are already struggling with affordability—makes the situation more difficult.

Zandi downplayed the likelihood of oil prices reaching $100 per barrel, but warned that if such levels are sustained, the economic consequences could be severe, including a heightened risk of recession.

President Trump has continued to minimize concerns. At a White House event on Thursday, he emphasized his “decisive action to help keep down the oil prices” and claimed that the market had stabilized after a brief disruption.

Trump’s advisers maintain that the conflict with Iran will ultimately bring down oil prices. Earlier in the week, Trump dismissed worries about rising fuel costs in a Politico interview, stating, “People are loving what’s happening” regarding the situation in Iran.

Despite these public reassurances, reports indicate growing anxiety within the White House. Politico revealed this week that senior energy advisers are under pressure to deliver positive news to offset the impact of rising prices.

Ben Werschkul reports from Washington for Yahoo Finance.

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