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Trump's Iran War Drives US Gas Prices to 3-Year High

Financial Times Companies •
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US petrol prices have surged to $3.58 per gallon, the highest level since Donald Trump took office, as his military actions in Iran drive up energy costs. The 20% spike since launching military operations has put the president on the defensive with price-sensitive voters ahead of November's midterm elections.

Motorists now pay more at the pump than at any point during Trump's presidency, creating political headaches for Republicans fighting to maintain control of Congress. Energy analysts note Americans fill up approximately 50 times annually, giving voters frequent reminders of rising costs. The price surge has already complicated Federal Reserve policy decisions, with traders now expecting fewer interest rate cuts this year.

Investors have scaled back expectations for monetary easing as the central bank balances inflation concerns against economic growth. The Fed faces mounting pressure to address both elevated energy prices and a softening jobs market. With Trump's approval ratings already under pressure, the sustained fuel price increases threaten to undermine Republican messaging on economic stewardship as voters head to the polls.