Gov. Gavin Newsom (D) has announced that California will clear regulatory hurdles to allow retailers to sell E15 gasoline to combat high fuel costs amid rising tensions between Washington and Tehran.

Trump's Disastrous War in Iran

In a post on X on Sunday, Newsom criticized President Donald Trump. "With Trump's disastrous Iran war sending gas prices skyrocketing, California is acting to help provide more affordable fueling options," Newsom said, adding that his administration had signed legislation that will help residents access a gasoline blend with 15% Ethanol and 85% gasoline.

The California Governor touted E15 as "a lower-cost fuel option that maintains our environmental and safety standards." Newsom had legalized the blend in the state late last year, but the rollout faced delays, according to a statement released by Newsom's office on Sunday.

The move will cut "unnecessary red tape that has kept a lower-cost fuel option out of reach for California drivers," the Governor's office said in the statement.

Gas, Oil Prices

Newsom's move comes as gasoline and diesel prices in the U.S. have surged; according to data collected by the American Automobile Association (AAA), the national average price of gasoline on Monday was $4.4786/gallon, while diesel was $6.5107/gallon.

On the oil front, West Texas Intermediate (WTI) crude futures contracts ending in November 2026 slipped 2.02% to $94.14 at the time of writing this article, while Brent crude futures contracts ending in November also slipped 1.90% to $101.90 at press time.

ProShares Ultra Bloomberg Crude Oil (NYSE:UCO) ETF fell 1.05% to $52.48 during pre-market trading on Monday. The United States Oil Fund (NYSE:USO) ETF also declined 1.53% to $151.50 during pre-market trading.

Iran War

Newsom had slammed Trump, as well as Energy Secretary Chris Wright, saying that the administration knew of the impact the Strait of Hormuz's closure would have on fuel costs, but did nothing to shield Americans from its impact.

Meanwhile, Iran's Parliament Speaker Mohammad Bagher Ghalibaf on Sunday warned the U.S. that it would be impossible not to suffer from a "blowback" or the consequences of targeting Iran over the Strait of Hormuz. He reaffirmed Tehran's control over the waterway, which is responsible for moving a fifth of the world's oil supply.

Winter Blend Gasoline

Last month, Trump's Environmental Protection Agency (EPA) had authorized the early release of a winter blend of gasoline with up to 10% Ethanol mixed with 90% gasoline in a bid to combat high prices at the pump. Summer and Winter blends of gas are separated by a phenomenon known as the Reid Vapor Pressure (RVP), which illustrates how easily fuel could evaporate at higher temperatures.