Americans are experiencing a sharp rise in gas prices this week, with the national average gasoline price posting its largest weekly jump since the early days of the Russia-Ukraine war. If fuel prices continue to climb as the U.S.-Israeli Operation Epic Fury intensifies against Iran, the fallout for consumer sentiment may weigh on the broader economy and affect voting polls in the near term.
The surge in gasoline and diesel prices at pumps nationwide doesn’t appear to be a concern for President Trump (at least not yet).
“I don’t have any concern about it,” the president told Reuters in an interview on Thursday evening when asked about rising prices.
“They’ll drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit.”
The president’s comments come as the national average gas price at the pump has jumped nearly 11% this week to $3.32 per gallon, according to the latest figures from the travel organization AAA.
The nearly 11% surge in the national average is the biggest weekly jump since the week of March 6, 2022, when there was a 12.6% spike due to energy market chaos stemming from the war in Eastern Europe.
Surging WTI futures on Friday morning, now at $86/bbl (Brent crude futures above $90/bbl), suggest that pump prices could be headed higher into the weekend. This is a very big concern for the Trump administration, despite Trump downplaying the whole price surge.
“We have slightly higher oil prices for a little while, but as soon as this ends, those prices are going to drop, I believe, lower than ever before,” Trump told reporters in the Oval Office on Tuesday.
Current WTI fut pricing suggests $3.80-ish for gas at the pump.
Trump has often touted low pump prices as one of his major accomplishments in making the economy more affordable for Americans after the inflation storm during the four years of the Biden-Harris administration. To be fair, gas prices nationwide are still relatively low compared to those years.
On Wednesday, Energy Secretary Chris Wright told Fox News that any increase in pump prices would be a temporary bump and a “very small price to pay” for accomplishing Trump’s goals in the Middle East. The U.S. is more sheltered than ever to withstand a global energy shock, thanks to Trump’s ‘pump baby pump’ pro-energy policies.
To mitigate the incoming energy shock created by the paralyzed Strait of Hormuz, Trump ordered the government to provide risk insurance for tankers transiting the waterway earlier this week. However, as we have already explained, and as Qatar’s energy minister warned this morning, the risks of both an energy shock and a financial shock are soaring.
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