Trump Administration Pushes for Stronger Response to Rising Gas Prices

The White House is directing federal agencies to develop additional policy solutions as energy costs surge due to the Iran conflict. Gas prices have climbed above $3.30 per gallon nationally, with concerns about potential political impact ahead of midterm elections.

The Trump administration is directing federal agencies to develop additional strategies for tackling rising energy costs as the conflict with Iran continues to drive up fuel prices, sources familiar with the discussions revealed.

According to one source, high-ranking officials have instructed the Energy, Transportation, and Treasury departments, along with the Environmental Protection Agency, to present additional policy alternatives. The focus remains on actions President Trump can take independently, without requiring Congressional approval.

These directives suggest the administration is preparing for potentially more aggressive intervention should oil and gasoline costs continue their upward trajectory. Political experts warn that elevated fuel prices could damage Trump and Republican candidates in the upcoming November midterm elections, where Congressional control hangs in the balance.

White House spokeswoman Taylor Rogers addressed the coordination efforts, stating: “Obviously the White House is coordinating with the interagency on this important issue, if we were not, it would be a problem. President Trump and his entire energy team have had a strong game plan to keep oil prices stable well before Operation Epic Fury began, and they will continue to review all credible options and execute on them when appropriate.”

On Friday, both domestic and international crude oil futures surpassed $90 per barrel, with U.S. prices jumping more than 12 percent. The increase stems from Middle Eastern supply disruptions caused by the Strait of Hormuz’s effective shutdown during the escalating U.S.-Israeli military campaign against Iran.

American gasoline costs have spiked in recent weeks to heights not witnessed since late 2024. Regular unleaded now averages more than $3.30 nationally, while diesel has reached $4.26 per gallon.

The administration has maintained a measured approach to energy market intervention, concerned that overly aggressive tactics might produce negative consequences. Officials emphasize that comprehensive measures require careful planning, warning that poorly executed initiatives could destabilize markets, undermine public confidence, and create political problems. Industry experts remain doubtful about the administration’s ability to significantly impact pricing.

Among the strategies under consideration are suspending federal gasoline taxes and relaxing environmental standards for summer fuel blends to permit higher ethanol content, as Reuters previously documented.

The Treasury Department is examining a proposal involving oil futures markets, though no immediate announcement is planned.

Trump issued an order Tuesday directing the U.S. International Development Finance Corporation to offer insurance protection against losses from political instability or conflict affecting Gulf maritime commerce. This action followed the complete halt of oil and liquefied natural gas tanker traffic through the Strait of Hormuz, which handles approximately 20 percent of global daily oil shipments.

Market reaction to the insurance initiative has been mixed. Analysts question whether financial guarantees alone can address the operational and security challenges created by escalating regional tensions.

The administration announced Friday it would provide reinsurance coverage for up to $20 billion in Gulf region losses to encourage confidence among oil and gas shipping companies during the Iranian conflict.