Gas Prices

President Donald Trump is trying to reassure Americans that fuel prices are not as bad as they seem, even as the Iran war continues to pressure global oil supplies and keep drivers uneasy. He told reporters this week that gas is “not very high, relatively speaking,” arguing that prices are still lower than they were under the Biden administration. The comments came as a Reuters/Ipsos poll found that 60% of Americans disapprove of U.S. military strikes against Iran, and most expect gasoline prices to keep rising. Gas Prices Remain Elevated AAA said the average price of regular gasoline was $4.15 per gallon on June 10, down from $4.26 a week earlier and $4.52 a month earlier. That is still well above the $3.12 average from the same time last year. Blockades in the Strait of Hormuz have limited the global oil supply, and regular gasoline prices are up nearly 40% since the conflict began. Labor Department data released June 10 showed gas prices rose 7% in May after a 5.4% rise in April and a 21.2% jump in March. Public Frustration Is Growing Of the 4,531 Americans surveyed by Reuters/Ipsos, 59% said they expect gas prices to get worse over the next year because of the war. That view was shared by 83% of Democrats, 61% of Independents, and 34% of Republicans. The pressure at the pump is also weighing on broader economic sentiment. The University of Michigan’s consumer sentiment measure fell to its lowest level in May since the survey began more than seven decades ago, and 57% of those surveyed said high prices were eroding their personal finances, according to Surveys of Consumers Director Joanne Hsu. Trump Points To Oil Flow Through Hormuz Trump said the United States has been “taking out millions of barrels of oil” from Iran, adding that the effort is meant to help bring fuel prices down. He also said, after attending game 3 of the NBA Finals, that “a lot of oil is coming out of the Hormuz strait” and that the price is “not very high, relatively speaking.” Crude oil hit $117.60 in April, a little more than a month after the war began, but it was sitting at $90.30 in the afternoon on June 10. That is lower than the record $130.50 per barrel reached in March 2022 after Russia’s invasion of Ukraine also restricted global oil supply. Last month, Trump told reporters that Americans’ financial problems were “peanuts” compared with the risk of Iran getting a nuclear weapon, and he said elevated prices would not last “much longer.” Fuel costs have eased since the start of last month as hopes grew for de-escalation in the Middle East and some tankers managed to leave the gulf. Read more at: www.usatoday.com

Trump Downplays Rising Gas Prices, Even As Iran War Tightens Oil Supply