So here's a fun little political spat that's also, you know, about the price of the stuff that makes the global economy go. Oil just crossed $100 a barrel for the first time since 2020, and California Governor Gavin Newsom decided to give President Donald Trump a gentle—and very public—reminder about his past opinions on the matter.
Newsom took to social media late Sunday and posted a screenshot. It was a tweet from Trump, back in 2013, when the platform was still called Twitter. "Do you notice that oil prices just went up big time?" the old post read. Newsom's caption was just two words: "We noticed." It's the kind of political jab that doesn't need a lot of explanation. The point is clear: the guy who once seemed worried about oil prices going up is now the guy shrugging as they skyrocket.
And skyrocket they have. West Texas Intermediate crude was last seen trading over 13% higher at $102.86 a barrel. The immediate catalyst is the ratcheting tension with Iran, which has markets on edge about potential disruptions to supply from a critical oil-producing region. It's the classic geopolitical risk premium showing up at the gas pump.
Which brings us to Trump's current take. On Sunday, he framed the oil price spike as a "very small price to pay" for global security. Last week, he was even more blunt, telling Reuters he had "no concern" about rising gas prices and that "If they rise, they rise." It's a notable shift from a president who has frequently boasted about low fuel costs during his administration.
The situation got another layer of complexity recently. Israel conducted extensive strikes on about 30 Iranian fuel depots. According to reports, this ignited the first significant discord between the U.S. and Israel since the broader conflict began. The U.S. concern, shared with its ally, is that hitting this kind of infrastructure could backfire—potentially causing an even sharper spike in oil prices by threatening supply chains.
On the policy side, Treasury Secretary Scott Bessent told CNBC last week that the administration is preparing a series of measures to try to tame energy prices. Trump had previously announced that the U.S. Development Finance Corporation would provide political risk insurance and guarantees for maritime trade, with a focus on energy shipments through the Gulf. He also stated the U.S. Navy is prepared to escort tankers through the critical Strait of Hormuz, a major chokepoint for global oil shipments.
Now, let's talk about what this means where the rubber meets the road—or more accurately, where the fuel meets the tank. Trump has often pointed to gas prices dipping below $2 a gallon as a win. Back in November, RBOB gasoline futures were trading near $1.90, after hitting a four-year low around $1.74 in mid-October. That's a campaign talking point.
The current reality is different. Those same gasoline futures are now trading over 9% higher at $3.00 per gallon. And in Newsom's home state of California, the pain is even more acute. The state is the only one in the nation with an average fuel price above $5 a gallon—specifically, $5.20 amid the current crisis. A mix of state taxes, environmental regulations, and special fuel requirements keeps California's prices consistently at the top of the charts.
So you've got a political zinger from a governor in a high-price state, a president downplaying a major market move he once highlighted, and a complex geopolitical mess pushing crude past a psychological milestone. It's a reminder that in global markets, the past has a funny way of catching up with you, especially when someone on social media is keeping receipts.
