Trump Explores Options to Lower Gas Prices Amid Strait of Hormuz Blockade

U.S. President Donald Trump is exploring his available options to lower gasoline prices at fuel stations due to the war with Iran, as gas prices are rising sharply, and with them, voter reactions, according to The Washington Post.

The national average gasoline price rose to a record $4.39 on Friday, an increase of more than 30 cents from last week. Analysts warn that prices will continue to rise as long as the Strait of Hormuz remains closed to navigation, as the stalemate between President Trump and Iran is trapping oil, petroleum, and other derivatives.

Alleviating these concerns was the focus of important internal discussions at the White House. Trump met with energy sector executives at the White House, according to a White House official who spoke on condition of anonymity to describe the private meeting.

Treasury Secretary Scott Bissett hosted the meeting, which was also attended by Chief of Staff Susie Wiles and Vice President J.D. Vance. They discussed the steps Trump has taken to alleviate pressure on global oil markets, and what could be done later if the current blockade continues for months, according to the official.

As the conflict enters its tenth week, the White House has exhausted many of the policy tools the federal government can use to alleviate rising gas prices, and the remaining options carry other economic and political risks for the President.

So far, the Trump administration has only made sporadic policy adjustments that have led to a slight decrease in prices. In March, the administration began drawing 172 million barrels from the Strategic Petroleum Reserve.

Trump also temporarily suspended the Jones Act, a law over a hundred years old that requires goods transported between U.S. ports to be carried on U.S.-flagged vessels, in an attempt to protect the domestic shipping industry.

The administration also lifted environmental restrictions that prohibit the sale of high-ethanol gasoline blends during the summer, fearing that this would exacerbate smog. The Treasury Department has temporarily suspended some sanctions on the sale of Russian oil.

After these measures, the available options to slow the rise in gasoline prices are limited, and analysts say that these other options will only provide slight relief but carry significant risks.

Some lawmakers in Congress have proposed repealing the federal gas tax, which is 18.3 cents per gallon for gasoline and 24.3 cents per gallon for diesel fuel. However, such a move would only provide slight relief given the rapid rise in gas prices, and it is unclear whether gas stations would pass these savings on to consumers.

The tax also funds the Highway Trust Fund, which is responsible for highway maintenance and already faces a deficit due to increased fuel efficiency.

Trump previously stated that he believes states should abolish gas taxes first, and a White House official said the White House is not currently considering a proposal to suspend the gas tax.

Former President Joe Biden had proposed suspending the gas tax when fuel prices rose following Russia's invasion of Ukraine, but Congress ultimately did not take this step.

Among other measures that could ease the burden on consumers is a ban on exporting U.S.-produced oil to other countries. Trump administration officials have opposed this proposal, and it is likely to face widespread negative reactions from oil companies that have expanded their export operations over the past decade.

White House spokesperson Taylor Rogers stated that Trump has been "frank with the American people" about the "temporary short-term disruptions" resulting from the war with Iran.

Rogers added in a statement to The Washington Post: "The President has succeeded in lowering oil and gas prices to their lowest levels in many years and at record speed, and with the return of normal navigation in the Strait of Hormuz, these energy prices will fall again."

Rising gas prices have been a political concern for Republicans in a midterm election year. The Biden administration also struggled to contain the negative political backlash associated with rising gas prices and found that many of the maneuvers used by the Trump administration were not effective in countering the sharp rise in global oil prices.

Ryan Cummings, an economist on the White House Council of Economic Advisers under the Biden administration, said: "People didn't like rising gas prices, and this really hinders other parts of your agenda that you're trying to achieve."

Most analysts believe that the only decisive way to curb rising prices is to reach an agreement with Iran that ensures the Strait of Hormuz remains open for maritime navigation in the long term.

However, Trump told reporters on Friday that he was "not satisfied" with the latest Iranian proposal to end the conflict.

Patrick De Haan, head of petroleum analysis at GasBuddy, said: "We are entering what could become a much larger energy crisis in the coming weeks, and instead of recognizing a potential error, both the White House and Iran appear to be sticking to their positions."