Trump’s Iran War Blows Up His Gas Price Promise: Pump Hits $4.29 as Oil Giants Rake In $140 Billion
Gas prices have surged past Biden-era levels under President Trump as his war with Iran disrupts the Strait of Hormuz, even while American oil companies post massive profits.
President Donald Trump entered office promising to make gas "dirt-cheap again," but nearly eight months into his war with Iran, Americans are paying more at the pump than they did under former President Joe Biden [272349]. The average price of regular gas has hit $4.29 a gallon, up from $2.98 just before the conflict began, while diesel has jumped to $6.35 from $3.75 [271027].
The war, which Trump announced with "major combat operations" against Iran on Feb. 28, has destabilized global energy markets and pushed prices upward [271931][272349]. Ship attacks in the Strait of Hormuz — a narrow waterway through which a large share of the world's oil passes — continue despite Trump's repeated claims that the war is won or nearly finished [272567]. Fatih Birol, head of the International Energy Agency (IEA), warns that energy markets will not return to pre-war conditions even during 2027 [272567].
Iran's Supreme Leader has called for the war to end only if Tehran's conditions are met, without specifying those conditions [272219]. A spokesman for Iran's Revolutionary Guard warned that any military action would provoke a response "several times greater" than the attack itself [270392]. Meanwhile, Iran said indirect negotiations with the United States are still ongoing but that it will not give in to Trump's demands, even if he orders new military strikes [271959].
Britain and Oman have stressed that the Strait of Hormuz must remain open, warning that any closure would disrupt global trade and energy supplies [267806].
While ordinary Americans struggle with rising costs, Trump acknowledged at a Georgia rally that oil companies are making a "fortune" from the war [271027]. "The United States oil and gas business is making hundreds of billions of dollars," Trump said. "I don't give a damn, I'm going to say it — we're making a freaking fortune" [271027]. A second-quarter report from the Oil & Gas Journal found that a sample of 38 US producers and refiners grew revenues by about $140 billion year over year, driven by surging crude prices tied to Strait of Hormuz disruptions [271027].
The war has also reshaped global energy markets in other ways. Qatar has agreed to buy US natural gas, benefiting American exporters of liquefied natural gas (LNG) — gas cooled to liquid form so it can be shipped across oceans [270064].
Trump has taken steps to lower gas prices ahead of the midterms. On October 9, he said he reached a deal with Russian President Vladimir Putin to import Russian diesel, which had been heavily sanctioned since Russia's invasion of Ukraine. Analysts warned the move could help the Russian economy as the country continues its war in Ukraine [271027].
With one week before the midterm elections, Trump is struggling to deliver on his promise to bring down costs [271935]. The White House did not immediately respond to a request for comment [271027].