Friday, 07 August 2026

White House Says Iran War May Lower Gas Prices Long Term

BT International Desk
Disclosure : 11 Mar 2026, 10:41 AM Update : 11 Mar 2026, 10:46 AM
File photo: Karoline Leavitt White House Press Secretary
File photo: Karoline Leavitt White House Press Secretary

Gasoline prices in the United States have risen sharply since the US-Israel conflict with Iran began. In some states, drivers are paying more than $5 per gallon. Despite the surge, the White House says the increase will be temporary.

On Tuesday, White House Press Secretary Karoline Leavitt said the price rise is short-term and that the Trump administration’s military action against Iran could eventually reduce fuel costs.

“This ongoing war with Iran will lower gas prices in the long term,”Karoline Leavitt said during a press briefing.

She added that if the national security goals of Operation Epic Fury are fully achieved, oil and gas prices could fall quickly.

“Americans may see prices drop even below pre-operation levels. We will also live in a world where Iran can no longer threaten the United States or our allies with a nuclear weapon,” she said.

According to the American Automobile Association (AAA), the national average price for gasoline was $3.48 per gallon on Monday, up about 17 percent from earlier levels. On Tuesday, it rose further to $3.54 per gallon — an increase of roughly 19 percent.

Prices vary widely by region. In California, gasoline has reached about $5.20 per gallon, while in Kansas it is around $2.92.

Rising tensions in the Middle East have disrupted crude oil supplies from the Persian Gulf. On Monday, global oil prices briefly crossed $100 per barrel for the first time since the Ukraine war.

Security concerns have also slowed shipping. Oil tankers are waiting at ports due to fears of attacks, reducing supply. Some major oil-producing countries, including Iraq, the United Arab Emirates and Kuwait, have cautiously limited production as exports face disruptions.

The situation could worsen if tensions escalate further. Iran is reportedly attempting to deploy mines in the Strait of Hormuz, a critical shipping route through which roughly one-fifth of the world’s oil passes.

The Trump administration has proposed providing insurance for oil tankers to keep shipments moving. President Donald Trump also warned on social media that Iran would face retaliation “twenty times harder than what we’ve done so far” if it attempts to block oil traffic.

Karoline Leavitt said the administration will not allow disruptions to the key shipping route.

“The president will not allow Iranian terrorists to stop the free flow of the strait,” she told reporters.

She also confirmed that the United States has offered “political risk insurance” for tankers and that the US Navy could escort vessels if necessary.

“The president and his energy team are closely monitoring the market and speaking with industry leaders. The US military is also preparing additional options to keep the Strait of Hormuz open,”Karoline Leavitt.

She did not provide further details but stressed that Trump “is not afraid” to use those options if needed.

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