U.S. Gasoline Prices Hit Politically Sensitive $4 Level As Trump Eyes Iran War Off-Ramp
The overnight Wall Street Journal report that President Trump told aides he is willing to wind down the U.S. military campaign against Iran even if the Strait of Hormuz remains disrupted (and appeared to confirm this narrative in a social media post this morning) comes just as the national average gasoline price hit the politically sensitive $4-a-gallon threshold, underscoring the delicate balancing act the administration is facing in managing battlefield objectives and domestic fuel costs. The latest AAA data shows gasoline prices nationwide topped $4 a gallon on Monday, a 35% increase for Regular 87 at the pump and the largest price shock on record dating back to 2004. Regular 87 gasoline prices at the pump nationwide have returned to the price shock levels seen during the 2022 Russia-Ukraine crisis. Largest monthly price shock on record. Early last week, Bonnie Herzog, managing director and senior consumer analyst at Goldman Sachs, wrote in a note that when fuel prices spike to these “psychological threshold” levels, above $3 and approaching $4 a gallon, consumers tend to drive …





