Three sources familiar with internal White House discussions revealed that officials in the Trump administration are urgently addressing the economic and political repercussions stemming from the war with Iran, as hopes for a swift resolution fade.
This week, U.S. President Donald Trump endorsed a proposal to suspend the federal gasoline tax. This measure would reduce the price per gallon by 18 cents—against a current national average exceeding $4.50 per gallon. Sources indicated that while some White House aides initially viewed the idea as unnecessary, it has gained urgency as officials face dwindling options to demonstrate they are tackling rising prices.
There is a consensus within the White House that Trump needs to "immediately deliver a visible relief measure for consumers," one source stated, noting gasoline prices have risen 50% since the conflict began.
Historically, price levels around $4 per gallon typically trigger public backlash and economic anxiety. This pattern has already emerged since the war started: consumer confidence recently hit a record low, and U.S. consumer inflation surged to 3.8% in April, the highest rate in nearly three years.
A Reuters/Ipsos poll in May showed over 60% of Americans reported their household finances were negatively impacted by rising fuel costs. The poll also indicated Trump's approval rating on economic management stands at just 30%, having declined several points since the conflict began.
Trump now faces increasing pressure from Republican allies, who worry the economic strain from the war could provoke a voter backlash, potentially costing the party control of the House or even the Senate in the November midterm elections.
According to two individuals familiar with the discussions, administration officials are closely analyzing market data to gauge whether the national average gasoline price could climb to $5 per gallon. Data from AAA shows seven states have already surpassed that threshold.
"They feel this is now their biggest vulnerability: not the overall economy, but the specific cost of gasoline," a White House political advisor commented.
White House spokesperson Taylor Rogers stated that Trump and his energy team anticipated the war's impact on global energy markets and prepared plans to mitigate it.
"For a long time, providing reliable, affordable, and secure energy for America and our allies has been a key strategic objective for President Trump, and his successful efforts to unleash U.S. oil and gas resources have achieved that goal," Rogers said.
**"Small Price to Pay"**
U.S. oil and fuel exports have surged to record levels as buyers in Asia and Europe scramble for supplies, deepening the administration's concerns. This has caused U.S. inventories to decline during a period when they typically rise, prompting warnings from Wall Street analysts. They caution that the U.S. could face supply tightness this summer, leading to further price increases for gasoline, diesel, and jet fuel.
Energy prices have soared significantly since Iran blocked access to the Strait of Hormuz, a chokepoint that normally handles one-fifth of the world's oil supply. The impact is being felt across industries, from airlines to companies like McDonald's. The fast-food giant's CEO stated last week that spending by low-income consumers is declining.
According to U.S. Department of Transportation data, fuel costs for U.S. airlines jumped 56% in March compared to February, squeezing already thinly profitable carriers. This includes the troubled budget airline Spirit Airlines, which ceased operations in early May.
Trump has characterized these price increases as a "small price to pay" for overthrowing the Iranian regime and preventing Tehran from acquiring nuclear weapons.
When asked on Tuesday if Americans' financial situations were prompting him to seek a deal, Trump replied, "Not at all."
"When I talk about Iran, the only thing that matters is—they cannot have nuclear weapons," Trump told reporters. "I am not thinking about Americans' financial situation. I am not thinking about anyone. I am thinking about one thing—we cannot let Iran have nuclear weapons. That's it."
**Gas Tax Idea Gains Support**
A source familiar with White House discussions said that until late April, the gasoline tax proposal was considered a backup option. However, over the past week, as hopes for a ceasefire with Iran diminished, officials concluded a policy shift Americans could feel was necessary, and the idea gained support.
Trump's proposed suspension of the gasoline tax would require Congressional approval. Some Republican lawmakers have expressed enthusiasm for the idea, but party leaders have not yet taken a definitive stance.
In April, the administration waived sanctions on some Russian oil and relaxed shipping regulations to facilitate additional fuel shipments. On Monday, the Department of Energy announced it would lend an additional 53.3 million barrels of oil from the Strategic Petroleum Reserve to ease market tensions.
A Reuters/Ipsos poll conducted from April 24 to 27 found only a quarter of Americans believe the war with Iran is worth the cost, 53% believe it is not, and the remainder were unsure. One-fifth of Republicans said the war was not worth it.
Republican strategist Amy Koch, who advises state and federal candidates, stated the administration has a narrow window to end the conflict and alleviate fuel price pressures before Memorial Day, the unofficial start of the summer driving season.
"I think people are willing to endure some short-term economic pain if it means we solve the Iran problem," Koch said. "But for the White House, time is running out."
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