Trump Calls Rising Gas Prices ‘Inexpensive Price to Pay’ for Iran War

President Trump told a North Carolina crowd this week that surging gasoline prices are a small price to pay for the ongoing U.S. war with Iran. Trump played down the impact of surging gas prices, saying it is a very inexpensive price to pay for what the U.S. has done, framing the war as critical to prevent Iran from obtaining a nuclear weapon.

What Trump Actually Said

Trump added that it is a little more, and frankly, even if it was a lot more. The comments were made on the campaign trail as early voting approaches for the November midterms.

Political operatives in both parties note there are few things that may matter more this election year than the price of a gallon of gasoline.

Where Prices Are Right Now

The national average for a gallon of gas reached $4.48 on Friday, according to AAA, up roughly 17 cents over the last week, 40 cents in a month and $1.27 from a year ago.

The national average for diesel jumped 42 cents over the last week. That is a direct hit to freight, logistics, and anything that moves on a truck.

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Wall Street Is Flying Blind

Analysts raised concern over the price surge, noting uncertainty over the ongoing conflict. Natasha Kaneva, a commodities strategist at JP Morgan, wrote to clients that for the first time since the start of the Iran conflict, they don’t have a baseline view, adding that they simply don’t know how to model the endgame.

Translation for traders: energy volatility is not going away, and consensus price decks are being redrawn on the fly.

The Macro Read-Through

Trump has intensified pressure through an aggressive economic isolation campaign, while a 60-day ceasefire and diplomatic window expired without producing a lasting agreement. The conflict’s most significant impact on the U.S. economy is the rise in energy costs, which is contributing to higher inflation.

Sticky energy inflation complicates the Fed’s path and puts consumer discretionary names in the crosshairs as households reallocate spending toward the pump.

Options Market and Stocks to Watch

Watch the majors for continued flow tied to any oil-price extension:

• XOM — Exxon benefits directly from higher crude realizations; watch call flow into any Middle East headline.
• CVX — Chevron trades in tandem with XOM; watch for IV expansion around OPEC and Iran headlines.
• USO — The crude ETF is the cleanest proxy for headline-driven oil spikes.
• XLE — The energy sector ETF, watch for rotation flows if crude holds bid.
• DAL — Airlines are the flip side; watch for put flow if jet fuel keeps climbing.

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