Donald Trump is reportedly scrambling for solutions as his escalating war with Iran causes oil prices to skyrocket, per a report from Axios, threatening the affordability message he needs to deliver ahead of the midterms.
Over the weekend, the U.S. began a joint military assault on Iran alongside Israel, striking key leadership targets and prompting fierce counterattacks from the Iranian military. As part of Iran's response to the assault, the country also closed off the Strait of Hormuz, a body of water between Iran and the United Arab Emirates that provides the only path by sea out of the Persian Gulf, making it a major supply line for crude oil produced by the Gulf states.
With that passage blocked, many predicted that oil prices the world over would begin to skyrocket, just as Trump and the Republican Party are struggling against voter concerns about rising costs. According to an Axios report from Tuesday, the price of a barrel of crude oil is now around $83, up roughly $10 in just a week, and up from roughly $66 at the start of February. As a result, the average cost of a gallon of gas in the U.S. is also on the rise, currently sitting around $3.11, after starting the week just under $3.
Gas prices are often considered the most visible form of price fluctuations for American consumers, as they are advertised on signs that dot the roadways. Because of this, spikes in oil prices can have an outsized impact on how consumers are feeling about the cost-of-living, presenting a huge issue for Trump as he stares down a Democratic blue wave in November's midterm elections.
According to Secretary of State Marco Rubio, the administration "anticipated [that gas prices] could be an issue" before the start of military strikes on Iran. Speaking to reporters on Capitol Hill, he said that steps are being taken to "mitigate against" these price hikes, but did not give specific details.
One of the options on the table, according to Axios, would be for the administration to release oil held in the Strategic Petroleum Reserve, but other reports indicate that there are no plans for this. Other options could include a temporary lifting of gas taxes, which would deplete funds used for road and infrastructure repair, and easing economic sanctions on Russia, which would allow the U.S. to import oil from a source not impacted by the Hormuz closure.
Trump will reportedly hold a meeting with Energy Secretary Chris Wright and Treasury Secretary Scott Bessent on Tuesday, where solutions to this growing problem might be discussed.
