Trump shrugs off $4 gas, admits 'short-term hit' as war drives prices higher
Trump on Iran:
— Clash Report (@clashreport) March 26, 2026
I thought, frankly—I thought the oil prices would go up more, and I thought the stock market would go down more. It hasn't been nearly as severe as I thought.
I think they have confidence in maybe the American President and maybe the people sitting around this… pic.twitter.com/aBCRLdHhd2
WASHINGTON, DC: President Donald Trump downplayed the economic fallout from the ongoing conflict with Iran on Thursday, March 26, saying rising fuel costs and market volatility have been milder than anticipated.
“Frankly, I thought the oil prices would go up more, and I thought the stock market would go down more. Hasn’t been nearly as severe as I thought,” Trump said during a Cabinet meeting at the White House.
He added that the relative stability reflected confidence in his administration and its leadership.
Gas prices surge toward $4 a gallon
Despite the president’s assessment, fuel prices have risen sharply in recent weeks. The national average price of regular gasoline is nearing $4 per gallon, according to AAA, marking an increase of about $1 over the past month.
The spike threatens to become a political challenge for Republicans ahead of the November midterm elections, as households across the US grapple with higher costs.
Americans are already adjusting spending habits in response to rising fuel prices, with many telling CNN they are cutting back on essentials and discretionary purchases.
The surge in energy costs follows disruptions in global oil supply after Iran effectively restricted access to the Strait of Hormuz, a critical route for global crude shipments.
Gas tax relief remains on the table
Trump said his administration has considered suspending the federal gas tax to ease the burden on consumers, but has not yet decided to pursue the move.
“We’ve thought about it… It’s something we have in our pocket if we think it’s necessary,” he said, noting that such a step would require coordination with Congress and possibly state governments.
The president acknowledged that the US economy could face a temporary setback due to the conflict but expressed confidence in a rebound.
“We’re going to take a little bit of a hit, a short-term hit,” Trump said, while also warning that prices could rise further before stabilizing.
He predicted that oil prices would eventually fall back to or even below pre-war levels once the situation stabilises.
