Here's a cost of living update you probably didn't want: according to California Governor Gavin Newsom, you can thank the war with Iran for the pinch at the pump, the grocery store, and the airport. In a social media post this week, the Democratic governor took direct aim at President Donald Trump, arguing that the escalating conflict is hitting Americans right in the wallet.
"Gas, food, and airfare prices are soaring," Newsom said, also noting the rising casualty count among American troops. It’s a classic political one-two punch: policy failure leading to both human and economic cost. And on the economic side, he might have a point about air travel. United Airlines Holdings Inc. (UAL) CEO Scott Kirby had already flagged that rising jet fuel costs would inevitably mean pricier tickets for passengers. So if your summer vacation flight just got more expensive, you can apparently add it to the tab.
Newsom didn't stop there. "Russia and Iran are getting sanction relief," he said, referencing the easing of sanctions against Russia post its 2022 invasion of Ukraine. "Donald Trump launched his war with Iran with no plan and Americans are paying the price."
The governor doubled down following a presidential address, accusing the administration of "lying about their war with Iran since day one." He specifically called out Trump's claims that gas prices would come down. "Gas prices will come down? They're skyrocketing because of this war," Newsom countered, then posed the broader question: "How can the American people ever trust what this administration is saying?"
The numbers back up the sticker shock. According to AAA data, the national average for a gallon of gas was $4.064. On the West Coast, it's a whole different story: California ($5.892), Washington ($5.359), and Hawaii ($5.462). Meanwhile, oil markets are reacting to the geopolitical heat. West Texas Intermediate crude jumped over $104 a barrel, and Brent Crude breached $106.
In his address, President Trump touted the success of "Operation Epic Fury" but also issued a stark warning to Iran: agree to a deal, or the U.S. will strike your energy and oil infrastructure. The tough talk drew criticism from other prominent Democrats, including former Vice President Kamala Harris and Senator Elizabeth Warren, who called the human cost of the war "unconscionable."
Adding another layer to the criticism, Newsom reignited the "TACO" narrative—that's "Trump Always Chickens Out." This refers to a pattern from last year where the President would threaten tariffs during negotiations, only to delay them, leading to more talks. Newsom brought it up after reports suggested the U.S. might pull out of the war without reopening the critical Strait of Hormuz, a claim Trump later denied on social media.
So, to recap: a war, rising prices, accusations of dishonesty, and a revived acronym about negotiation tactics. Just another week where geopolitics and your personal finances are uncomfortably linked.
