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Politics

Trump’s Iran War Sparks Gas-Price Panic Inside the White House

Published on: March 5, 2026 at 2:45 PM ET

When the pump price jumps overnight, Washington starts sweating.

Frank Yemi
Written By Frank Yemi
News Writer
White House panics as Trump's Iran war hikes up gas prices.
White House panics as Trump's Iran war hikes up gas prices. (Image source: Wiki Commons)

White House aides urged President Donald Trump’s team to come up with ideas to address the rise in gasoline prices. This request followed the administration’s military actions against Iran, which disrupted energy markets and could complicate Republican messaging on affordability ahead of the midterm elections, according to a report from The Daily Beast.

Gas prices shifted rapidly this week. AAA announced on Thursday that the national average for a gallon of regular gasoline increased nearly 27 cents from the previous week, reaching $3.25. 

This rise occurred as crude prices rose into the mid-$70s per barrel amid ongoing conflict in the Middle East. The Energy Information Administration’s weekly survey showed U.S. regular gasoline at $3.015 on March 2, up 7.8 cents from the week before. The Midwest and Gulf Coast recorded some of the largest weekly increases.

Inside the West Wing, tensions ran high, as reported by The Daily Beast, which cited Politico’s account of internal discussions among energy officials. The report mentioned that White House chief of staff Susie Wiles has encouraged advisers to present options to the Oval Office as gas prices continue to rise. This shift contradicts the White House’s usual economic message as the midterm elections approach in November.

White House press secretary Karoline Leavitt pushed back against the notion that the administration is shaken. “Nobody is panicking,” Leavitt said in a statement to The Daily Beast, while criticizing Politico’s reporting. She added that the administration has a plan to keep oil prices stable throughout Operation Epic Fury.

BREAKING: US oil prices surge to their highest level since January 2025, now trading above $78/barrel.

Oil prices are now up +43% since December with US gas prices rising rapidly. pic.twitter.com/SIlxsqPn9L

— The Kobeissi Letter (@KobeissiLetter) March 5, 2026

The Daily Beast reported that Iran’s retaliatory attacks have impacted parts of the Gulf energy sector and shipping. This situation pushed crude prices up by more than $10 a barrel and raised gasoline prices by about 20 cents a gallon since U.S. strikes began. 

Reuters also noted increasing pressure on diesel prices, which closely correlate with freight and manufacturing expenses. The average retail price for diesel in the U.S. surged 14.7 cents in a single day to $4.04 a gallon, marking the first time it exceeded $4 in nearly two years, according to AAA data. Analysts warned that prices could continue to rise if disruptions persist.

As these price spikes occur, Trump’s advisers have suggested a range of ideas, from simple solutions to complex measures. According to The Daily Beast, one proposal included a temporary federal gas tax holiday, which would need congressional approval and might not guarantee lower prices at the pump. 

Officials also discussed additional U.S. military actions to safeguard energy infrastructure and shipping routes. This could involve escorting oil tankers through the Strait of Hormuz “if necessary,” a viewpoint Leavitt emphasized to the outlet.

Leavitt said that the administration plans to rely on increased domestic production and other measures aimed at stabilizing supply. This includes developing “newfound oil markets in Venezuela” and utilizing the U.S. International Development Finance Corp. to provide political risk insurance for ships operating in the Gulf.

For the White House, the politics are clear. Fuel prices are among the most visible expenses voters face daily. Rising diesel prices can quickly impact shipping costs, affecting everything from groceries to home goods, as economists and analysts told Reuters. 

Whether the administration’s military strategy and energy response can prevent further price increases may influence the economic narrative Republicans want to convey as November approaches.

TAGGED:Donald Trumpiran
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