President Donald Trump says Americans should not expect gas prices to fall until after the midterm elections, pointing to ongoing conflict with Iran as the main reason for the spike. Speaking to reporters on Wednesday (September 9) at Joint Base Andrews in Prince George's County, Maryland, President Trump said oil prices will drop quickly and gas could fall below two dollars a gallon once the elections are over and the Iran war ends. He added that these high prices are a trade-off for stopping Iran from obtaining nuclear weapons, as reported by Fox News.

According to the latest data from AAA, the national average for regular gasoline sits at $4.22 per gallon, with drivers in western states like California paying nearly $5.78 per gallon, while Indiana reports some of the lowest prices at $3.44. These elevated costs follow a record-breaking Labor Day weekend at the pump, with nearly 40 million Americans traveling despite the increase in prices. The rise is largely due to oil market concerns over disruptions in the Strait of Hormuz, a major route for global crude shipments, which have been threatened by fighting in the Middle East.

President Trump has characterized the surge in fuel prices as a temporary "glitch" and stated, "Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace," according to an interview with ABC News. However, some Democrats have criticized the administration’s approach and called on President Trump to use the Strategic Petroleum Reserve to lower costs for consumers. Senate Minority Leader Chuck Schumer argued that Americans "cannot afford to simply wait and hope prices come down."

Economist Paul Krugman warned that high gas prices may persist for "quite a few months," even if the Iran conflict ends soon, since other global factors—including Russia’s war in Ukraine—are also impacting oil markets. He told MSNBC’s Katy Tur, "People who are thinking that prices are going to drop off, if Trump thinks they're going to drop precipitously, there's absolutely no reason to believe that that's the case," as reported by Yahoo News.

With the midterm elections approaching in November, the cost of living and energy affordability remain central issues for voters. While President Trump maintains that relief is coming after the elections, analysts say the timeline depends on how long the Iran conflict and other global tensions continue to affect oil supplies.

The Financial Exchange with Barry Armstrong