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President Donald Trump said Friday evening that he will "never apologize" for the average price of gasoline rising above $4 per gallon.
At a rally in Garden City, New York, Trump said, "For you to pay a tiny little bit more for your gasoline, just remember you’re doing it so that a very evil country cannot have a [nuclear weapon]. So remember that when you have to pay a little bit more, you’re at $4. It’s OK."
In August 2024, during his campaign to return to the White House, Trump said, "We’re going to get your energy prices down. We’re going to get your energy prices down by 50%." One month later, he said, "Energy is going to bring us back. That means we’re going down and getting gasoline below $2 a gallon."
Diesel and gasoline prices have surged during the Iran war. According to AAA, the national average gasoline price has risen to $4.07 per gallon, up from $3.88 last month. Diesel prices have also climbed sharply, reaching $5.40 per gallon compared with $4.98 last month.
Higher energy prices have driven inflation in the US higher, pushing some Federal Reserve officials to advocate for higher interest rates. Data released this week shows that the US Consumer Price Index (CPI) slipped to 3.4% in July from the previous month’s 3.5%. Excluding the volatile food and energy prices, inflation stood at 2.5% in July, higher than the Federal Reserve’s target of 2.0%.
Gas prices may remain at elevated levels in the foreseeable future as the US-Iran war has moved into a stalemate. The Memorandum of Understanding (MoU) signed in June has ended, and Iran has embraced a tough position on reopening the Strait of Hormuz. It has demanded reparations, the unfreezing of its assets, and lifting of sanctions.
Trump is now leaning toward an economic response to the crisis as the US faces dwindling ammunition supplies and morale reportedly fades aboard the USS Lincoln. In a statement, Treasury Secretary Scott Bessent said the US would impose tougher sanctions aimed at forcing Iran back to the negotiating table. However, Iran, which believes it has won the war, has shifted into "survival" mode and is unlikely to buckle under the pressure.
Iran also aims to prolong the war, hoping that it will put more pressure on the US and Trump as his approval ratings fall. In a statement, Iran’s Deputy Foreign Minister said, "This strait will be opened and closed only under Iran’s command, and so long as you do not accept the reality of defeat and stop indulging in fantasies, Iran will continue to enforce the blockade."
Recent data show that traffic through the Strait of Hormuz has slowed further as attacks of ships continue. The UAE said that ships that attempted to cross through the Strait were attacked on Friday. This is notable because of the Strait’s pivotal role in the energy market.
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