Home | News | The US Seeks Ways to Cut Gas Prices as Iran War Drives Oil Higher

The US Seeks Ways to Cut Gas Prices as Iran War Drives Oil Higher

The Strait of Hormuz, located between Oman and Iran, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The strait is deep enough and wide enough to handle the world's largest crude oil tankers, and it is one of the world's most important oil chokepoints.

By Mark Young

March 7, 2026
9:52 pm
Los Angeles, CA

Top advisers to Donald Trump are searching for ways to lower gasoline prices after escalating conflict with Iran rattled global energy markets and pushed fuel costs higher. Trump’s chief of staff, Susie Wiles, has asked administration officials to present proposals aimed at easing energy costs for Americans, according to energy industry executives familiar with the discussions. One executive told Politico the White House is “looking under every rock” for ideas to bring down gasoline prices. The push follows U.S. strikes on Iranian targets and retaliatory attacks by Tehran across the region. Oil prices rose again after Iran launched a fresh wave of missile and drone strikes against Israel, American bases and other countries in the region, deepening concerns about disruptions to the production and transport of oil and natural

Top advisers to Donald Trump are searching for ways to lower gasoline prices after escalating conflict with Iran rattled global energy markets and pushed fuel costs higher.

Trump’s chief of staff, Susie Wiles, has asked administration officials to present proposals aimed at easing energy costs for Americans, according to energy industry executives familiar with the discussions. One executive told Politico the White House is “looking under every rock” for ideas to bring down gasoline prices.

The push follows U.S. strikes on Iranian targets and retaliatory attacks by Tehran across the region. Oil prices rose again after Iran launched a fresh wave of missile and drone strikes against Israel, American bases and other countries in the region, deepening concerns about disruptions to the production and transport of oil and natural gas.

The administration has already taken measures aimed at stabilizing global energy flows. Trump announced that the U.S. military would help protect commercial ships traveling through the Strait of Hormuz after Iran threatened tankers passing through the critical shipping corridor. The White House also directed the U.S. International Development Finance Corporation to provide insurance coverage for vessels whose policies were canceled as fighting intensified in the region.

White House press secretary Karoline Leavitt said the administration believes the president’s actions will ultimately benefit global energy markets by preventing Tehran from threatening the Strait of Hormuz — a narrow passage that carries more than 20% of the world’s oil supply.

In this photo obtained from the US Department of Defense, the US Navy’s aircraft carrier USS Dwight D. Eisenhower (CVN 69) (IKE) transits the Strait of Hormuz on November 26, 2023. (Ruskin Naval / US Department of Defense.

“I think it speaks to why this action was so necessary,” Leavitt told reporters Wednesday. “Ultimately, the energy industry is going to benefit from the president’s actions with respect to Iran.”

Among the ideas under consideration is a temporary federal gasoline tax holiday, though such a measure would require congressional approval and may not immediately reduce pump prices if retailers do not pass along the savings.

Analysts warn that the direction of oil prices will depend heavily on developments around the Strait of Hormuz, the narrow waterway off Iran’s coast through which roughly one-fifth of the world’s oil supply typically passes.

Energy disruptions are already spreading across the region. Several oil tankers have come under attack in Gulf waters since hostilities between the U.S., Israel and Iran erupted. A Bahamas-flagged crude tanker anchored near Iraq’s Khor al Zubair Port was reportedly targeted by an Iranian explosive boat, while another vessel off the coast of Kuwait was damaged in a blast.

Shipping disruptions have left roughly 200 vessels — including oil and liquefied natural gas tankers — anchored off the coasts of major Gulf producers, according to estimates based on ship-tracking data from MarineTraffic. Hundreds more ships remain outside the Strait of Hormuz awaiting safe passage.

Energy infrastructure has also been affected. BP evacuated foreign staff from Iraq’s Rumaila Oil Field after drones landed inside the facility, while Iraqi officials said the country has cut oil production by nearly 1.5 million barrels per day due to storage shortages and shipping disruptions.

The turmoil has spilled into financial markets as well. Stocks of retailers and airlines led declines on Wall Street Thursday as higher oil prices raised concerns about consumer spending and corporate costs.

American Eagle Outfitters shares dropped 13.7% despite reporting stronger-than-expected quarterly profit, as investors worried that higher gasoline prices could leave consumers with less money to spend on discretionary goods.

Airline stocks also slid as rising fuel costs threatened to increase operating expenses. American Airlines fell about 7%, United Airlines dropped 6.5%, and Delta Air Lines declined 5.3%.

Smaller companies were hit especially hard, with the Russell 2000 index falling 2.7%, reflecting broader concerns about economic growth.

Investors are watching closely to see how long the conflict may last. If oil prices surge to around $100 per barrel and remain there, analysts warn the global economy could face significant strain.

Still, some market strategists believe the economic shock could prove temporary.

“While further escalation remains a risk, we think the more likely outcome is an increase in market risk aversion that likely lasts only a short time until investors can see a winding down of hostilities,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.