US gasoline pump prices jump to highest level under Trump

U.S. gasoline pump prices advanced to the highest level at any time under President Donald Trump, with the conflict in the Middle East disrupting energy supplies.

The average retail price of gasoline rose to $3.32 gallon on Thursday, according to the American Automobile Association. Futures have also rallied 27% this week and are on track for the biggest weekly advance since March 2022.

Trump has frequently touted cheaper gasoline when talking about American energy dominance, but the run up in fuel costs could pose a significant challenge for the president and his party at midterm elections later this year. Current prices at the pump are the highest Trump has had to manage in his first or second term.

The Trump administration is attempting to reduce pressure on prices. The Treasury Department eased curbs late Thursday on India’s ability to buy Russian oil.

Asian refiners have been cut off from critical supplies of crude that typically flow through the Strait of Hormuz, prompting some to consider reducing their fuel output. China has told its largest refiners to suspend diesel and gasoline exports.

Qatar’s Energy Minister Saad al-Kaabi warned that all energy suppliers in the Persian Gulf will likely be forced to suspend exports within weeks if the Iran conflict continues. Qatar, which halted its Ras Laffan liquefied natural gas plant this week following an Iranian drone attack, will be unable to restart its massive natural gas production until hostilities have completely ended, Energy Minister Saad al-Kaabi told the Financial Times.

The Middle East disruption also comes as U.S. refiners switch from producing winter-grade gasoline to more a more expensive grade of the fuel, an annual transition that typically pushes prices up in the spring.