Tag: gas prices
Top Trump Adviser: Rising Gas Prices Show 'People Are Optimistic About The Future'

Top Trump Adviser: Rising Gas Prices Show 'People Are Optimistic About The Future'

President Donald Trump’s failure to negotiate an end to his war with Iran has led the administration to now absurdly claim the resulting rise in gas prices are a good sign for the economy.

Kevin Hassett, the Trump-appointed director of the National Economic Council, made the claim during an appearance on Fox News Sunday.

“People are spending more on gas, but they’re also spending more on everything else—not just groceries but restaurants and so on. And I think that’s a sign that you would see when people are optimistic about the future,” Hassett said.

In the weeks following Trump’s choice to attack Iran, which has caused the closure of the vital Strait of Hormuz shipping route, gas prices have reached an average of $4.32 per gallon, according to the American Automobile Association. That is significantly more than the $3.14 that a gallon cost at this time last year.

No serious economist would argue that rapidly increasing the cost of a necessity like fuel could be seen as a positive economic indicator, and the Trump administration is aware of this.

Increased fuel costs, along with Trump’s increased tariffs, have caused inflation to rise. According to the Commerce Department, inflation reached 3.8 percent year-over-year in April, the highest rate that has been measured since May 2023.

The recovering economy that Trump inherited from former President Joe Biden is being washed away by Trump’s actions.

On his Truth Social account, Trump fumed on Sunday night that he is receiving criticism for his diplomatic impotence. Trump and his team have continually promised that a “deal” with Iran is imminent, but for weeks, nothing substantial has materialized.

“[D]on’t the Dumocrats, and various seemingly unpatriotic Republicans, understand that it is MUCH tougher for me to properly do my job and negotiate, when political hacks keep negatively ‘chirping,’ at levels never seen before, over and over again, that I should move faster, or move slower, or go to war, or not go to war, or whatever,” Trump wrote.

He concluded: “Just sit back and relax, it will all work out well in the end – It always does!”

Reprinted with permission from Daily Kos

Larry Kudlow

Fox Anchors' Nuclear Justification For Iran War -- And Its High Costs -- Is Collapsing

Fox pundits have repeatedly argued that the Iran war’s costs are “a small price to pay” for its supposed prevention of the imminent threat posed by Iran obtaining a nuclear weapon.

But a new U.S. intelligence assessment reportedly found that after two months of war, “the time Iran would need to build a nuclear weapon has not changed since last summer, when analysts estimated that a U.S.-Israeli attack had pushed back the timeline to up to a year,” according to exclusive reporting from Reuters.

Trump’s war of choice against Iran is now in its third month and headed for strategic defeat. While U.S. and Israeli strikes have killed Iranian leaders and severely damaged their military, the regime is intact and has established control over the Strait of Hormuz, a vital channel for global trade. Americans are seeing gas, diesel, and fertilizer prices soar as a result, and the direct cost of the war continues to grow.

Some Fox pundits, in the face of plummeting support for the war, have argued that these costs are relatively small compared to the benefit of preventing Iran from obtaining a nuclear weapon — but according to the new U.S. intelligence assessment, there was and remains no imminent threat of that happening.

Fox Business host Larry Kudlow, a former Trump economic adviser, argued in a Monday Fox appearance that skyrocketing fuel costs are “a small price to pay to stop the nuclear activity” from Iran, which he described as “the most gruesome regime we’ve seen in a hundred years” (note that this period includes Nazi Germany, the Soviet Union under Joseph Stalin, and Mao Tse-Tung’s China).

After Kudlow went on to say that “four and a half dollars gasoline — it's not a great idea, wouldn't want it forever, but it really isn't doing all that much harm,” Fox Business contributor Marcus Lemonis added, “I think you said it right, Larry. We don't want it forever, but this short-term pain has a big, big benefit to it.”

Fox host Sean Hannity, a close ally of the president and major supporter of his war, similarly claimed last week that skyrocking gas prices are merely “short-term pain” justified by preventing Iran from obtaining a nuclear bomb.

“It certainly is short-term pain,” Hannity told a guest during his April 30 broadcast. “Nobody wants to pay more for gas. Diesel is even more expensive, as you point out.”

“However, in exchange for not giving our children and grandchildren nuclear weapons, again, in the short term, I think I’d take that deal every day of the week,” he added.

And Fox host Todd Piro, during a rare mention of the $25 billion estimate a Pentagon analyst gave last week for the early cost of the war, said of that price tag, “If we are dead because Iran strikes us with a nuke, all these economic discussions are moot.”

But as Reuters reported on May 4, U.S. intelligence agencies did not assess that Iran could quickly obtain a weapon before the 2026 war began — or even before striking nuclear facilities last year — much less that the country could deploy it on U.S. soil:

U.S. intelligence assessments indicate that the time Iran would need to build a nuclear weapon has not changed since last summer, when analysts estimated that a U.S.-Israeli attack had pushed back the timeline to up to a year, according to three sources familiar with the matter.
The assessments of Tehran's nuclear program remain broadly unchanged even after two months of a war that U.S. President Donald Trump launched in part to stop the Islamic Republic from developing a nuclear bomb.

U.S. intelligence agencies had concluded prior ⁠to June's 12-day war that Iran likely could produce enough bomb-grade uranium for a weapon and build a bomb in around three to six months, said two of the sources, all of whom requested anonymity to discuss U.S. intelligence.
Following the June strikes by the U.S. that hit the Natanz, Fordow and Isfahan nuclear complexes, U.S. intelligence estimates pushed that timeline back to about nine months to a year, said the two sources and a person familiar with the assessments.

This new assessment further demolishes arguments for the war that Fox propagandists like Hannity offered after U.S. strikes began in late February.

Trump envoy Steve Witkoff, who negotiated on behalf of the U.S. in talks with Iranian counterparts in the lead-up to the war, helped fuel those arguments by claiming on Hannity’s Fox show that Iranian negotiators had admitted possessing a uranium stockpile that could be weaponized “in roughly one week” and used to build 11 nuclear bombs. Witkoff lacks prior experience in nuclear diplomacy — but he does have sizable business interests in the Gulf region, at times partnering with Trump’s family business.

Reprinted with permission from Media Matters


Steve Scalise

Terrified By Iran War's Impact On Gas Prices, Republicans Try Blaming Democrats

Gas prices surged this week amid oil scarcity and investors’ realization that the Strait of Hormuz is not close to reopening.

“If it feels like gas prices are suddenly jumping everywhere, you’re not imagining it—and in parts of the country, the increases have been nothing short of explosive,” Patrick De Haan, a gas price expert with Gas Buddy, wrote in a post on X. “As of Friday, the national average price of gasoline has surged to $4.42 per gallon, the highest level since summer 2022. Diesel prices are climbing even faster, now at $5.56 per gallon, within striking distance of their all-time high.”

Republicans are panicked, knowing that high gas prices will sink them in November’s midterm elections. And those prices rest solely at the feet of President Donald Trump. He launched a war of choice that led Iran to close the critical Strait of Hormuz waterway, which has shocked oil markets and continues to threaten the global economy.

Yet, rather than push Trump to fix the problem he started, they made an embarrassing attempt to gaslight America about high fuel prices and to concoct far-fetched scapegoats, including former President Joe Biden, oil companies, and Democrats.

Republican Rep. Buddy Carter of Georgia, who is running for his party’s Senate nomination and auditioning for Trump’s endorsement, blamed the nebulous “Democrats” for surging gas prices, even though Democrats are against the war causing those price hikes.

“Remember, President Trump promised he’d make us safer and more prosperous. … Now yes, we’ve seen some gas prices fluctuation. Gas prices will go back down. Remember—high gas prices are the work of the Democrats,” Carter told Fox Business, reminding viewers of high gas prices during 2022, which were falling until Trump’s war.

That talking point was obviously sent around to Republicans. House Majority Leader Steve Scalise made a similarly ridiculous plea for voters to remember 2022.

“People will remember, you go back two years ago, we were paying almost $6 a gallon for gasoline,” Scalise said Thursday. “Right now, it’s in the 3s.”

Even conservative CNBC host Joe Kernen pointed out that Scalise was making up numbers. Gas was not $6 a gallon when Biden left office in January 2025, and on the day Scalise made that comment, AAA reported the national average was $4.30 a gallon.

Other Republicans came up with dumber scapegoats.

“It has to do with the greed of the oil companies,” Republican Rep. Tim Burchett of Tennessee told reporters on Capitol Hill. “And I blame Congress because every dadgum time we do this, ‘Oh, we’re going to bring the oil executives down here,’ and they shake the money tree, and every time I say this, my contributions from the oil distributors goes down.”

Rep. Burchett (R-TN) refuses to put any blame on Trump for high gas prices.Burchett: It has to do with the greed of the oil companies. We buy zero oil from Iran. 90% of their oil they sell to China. They're just gouging us. And I blame Congress.

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— MeidasTouch (@meidastouch.com) April 30, 2026 at 11:04 AM

De Haan said Burchett fundamentally doesn’t understand the laws of supply and demand with that comment.

“That’s not how oil markets work,” De Haan said of Burchett’s assertion. “Prices are driven by global supply and demand—not just what we import or who we buy from. comments like this ignore basic economics. the rep badly badly needs an economics refresher class.”

Rep. Rich McCormick, Republican of Georgia, made a similarly dumb statement, claiming that the U.S. doesn’t get oil from the Strait of Hormuz. But McCormick added a bonus scapegoat, blaming the price jump on Biden for not building a pipeline.

“Remember, the United States is not as dependent on foreign oil as everybody else,” he said. “We do it just because it’s a quicker track, but we don’t have to do that. If we had the pipeline that we didn’t complete thanks to the Biden administration for so long, we’d be in a much better position.”

Rep. McCormick (R-GA) says he doesn’t worry about high gas prices because we don’t rely on oil from the Strait of Hormuz, and blames Biden.McCormick: If we had the pipeline that we didn't complete thanks to the Biden administration for so long, we'd be in a much better position

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— MeidasTouch (@meidastouch.com) April 30, 2026 at 11:38 AM

Of course, the Keystone XL Pipeline would have little to alleviate the situation we are in. That’s because about a third of global oil supply goes through the Strait of Hormuz, and that traffic has plummeted since the start of the Iran war. That has created a shortage and driven up prices. And the Keystone XL Pipeline would have merely transported oil from Canada to the United States, not increased supply.

Ultimately, gas prices are high because of the war Trump started. Full stop.

The majority of voters are well aware of that, too.
Republicans can try to gaslight all they want. But they are to blame for this mess, and they will pay the price for it at the ballot box in November.

Is Trump's Promise To Slash Prices Working Out For You? No? I've Got Receipts

Is Trump's Promise To Slash Prices Working Out For You? No? I've Got Receipts

Donald Trump's assault on our democratic institutions did not stop voters from giving him a second term. The top reason they cited for reelecting him was the economy, notably their unhappiness over high prices.

During the campaign, Trump promised to "bring prices down, starting on Day One." How he would do this was left to our imagination. It seemed something along the lines of using his awesome powers to freeze prices and even make some melt. That and a pack of lies.

Two days back in office, Trump issued a "Fact Sheet" headlined "President Donald J. Trump Delivers Emergency Price Relief for American Families to Defeat the Cost-of-Living Crisis." Oh? Did you feel that instant "price relief" by virtue of Trump simply walking over the White House threshold once again?

His loyal defenders argued that, hey, that's how Trump talks. Give him some time and he'll bring the cost of living to heel. Trump has had well over a year to work his magic, and so let's see how his promises to enrich ordinary Americans have panned out.

— DOGE checks. Remember them? Trump said in February 2025 that he was "considering" a plan to send taxpayers some of the savings achieved by Elon Musk's Department of Government Efficiency. He threw out the number $5,000.

The number of DOGE checks issued: Zero.

— Tariff checks. Come August, Trump floated the idea of sharing the fruit of his trade war with the people. He talked of sending some tariff revenue back to Americans in the form of dividends.

The number of tariff dividend checks issued: Zero.

— Prescriptions 1,500 percent cheaper. Trump's negotiators did get drug companies to "promise" discounts on a small number of drugs. That led Trump to immediately announce something that was demonstrably untrue: "We now are paying the lowest price anywhere in the world for drugs."

Meanwhile, our median price for hundreds of brand-name drugs has risen four percent this year.

Not to quibble with Trump's math, but a 100 percent reduction would drive those drug prices down to zero. A 1,500 percent reduction is a mathematical absurdity.

— Credit-card interest rates capped at 10 percent. On January 10, Trump posted his call for that 10 percent limit on credit-card APRs (annual percentage rates). It was to start 10 days later and last a year. He added a threat to his decree: Credit-card companies would be "in violation of the law" if they didn't lower their rates as ordered. As it happens, presidents don't have the legal authority to force credit-card companies to slash their interest rates.

Spring is here, and the average credit-card APR is about 21 percent. That's higher than 10 percent, don't you think?

— Gas under $2.00. Trump promised that, but the war with Iran is incompatible with cheap gasoline. The U.S. average price for a gallon of regular gasoline currently stands at over $4.00.

— Lower grocery prices. On the campaign trail, Trump said, "A vote for Trump means your groceries will be cheaper." Since Trump returned to office, the consumer price index for "food at home" shows grocery prices up about 2.4 percent. That's not a huge jump, but in no way does it translate into "cheaper groceries."

Former President Joe Biden inherited messed-up supply chains in the wake of COVID. That was the main driver of his inflation numbers, though the stimulus spending didn't help. But when Biden left office, the inflation rate was down to three percent. For the record, it's now 2.4 percent.

There was much I didn't love about Kamala Harris, but Trump's attempt to violently overthrow the results of the 2020 election was the ultimate deal-killer for reelecting him. To me, the sanctity of American elections mattered more than the price of a hamburger. Many others, obviously, disagreed.

Froma Harrop is an award winning journalist who covers politics, economics and culture. She has worked on the Reuters business desk, edited economics reports for The New York Times News Service and served on the Providence Journal editorial board.

Reprinted with permission from Creators.

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