Donald Trump has claimed US fuel prices are “not very high, relatively speaking” as his administration faces affordability concerns following a surge in costs sparked by the war on Iran. The national average gas price stood at about $4.16 per gallon on Tuesday, according to AAA – $0.37 lower than a month ago, but still about $1 more expensive than the same time last year.
The US president has faced sustained frustration over the sharp rise in fuel costs since the start of the US-Israel war on Iran in late February. While he has repeatedly sought to downplay the increase, it comes as voters prepare for November’s crucial US midterm elections. Addressing reporters on Tuesday, Trump said the administration was releasing “a lot of oil coming out of the Hormuz strait”, one of the most crucial passageways for global trade, which has been all but closed since the war began.
Trump spoke from New York after attending Game 3 of the NBA finals, where he was loudly booed when shown on Madison Square Garden’s jumbotrons. He also pointed out that gas prices remain lower than during the Biden administration, “and he wasn’t stopping the country from having a nuclear weapon”. Record-high gas prices in 2022 were exacerbated by the war in Ukraine.
The sharp uptick in energy prices largely drove inflation to 3.8% last month, the highest increase since 2023. Americans have felt the effects on everyday life, including groceries and air travel. Moody’s Analytics estimates the war and high energy prices have cost US households about $100bn. The Bureau of Labor Statistics is due to release May inflation estimates on Wednesday, which will likely shape the outcome of next week’s Federal Reserve meeting.
