President Donald Trump has said gasoline prices could rise again if the United States carries out another military strike against Iran, while expressing confidence that Tehran wants a deal to avert further attacks—and that pump prices are most likely poised to fall sharply.
Trump made the remarks in an interview with Punchbowl News after being asked about comments he made during an Aug. 5 rally in Las Vegas, where he predicted that easing tensions with Iran would drive down energy costs, while also hinting at the possibility of a short-lived price spike.
“As soon as this situation ends with Iran, oil is going to go down to the floor, gasoline’s going to go down,” Trump told rally-goers.
The president pointed to crude oil recently dipping to around $75 per barrel as evidence that prices were already declining.
“When gasoline, when oil goes down—and it’s going to go down very rapidly, and it’s happening very soon, already happening,” Trump said, before adding that, “we may have to send it up again.”
Asked by Punchbowl whether his remark at the rally means that gas prices might “go up again a little bit,” Trump said prices would rise only if the United States carried out another attack against Iran.
“No. No, that’s only if I have to do another hit,” Trump said in the interview published on Aug. 7.
Pressed about nervousness among lawmakers on Capitol Hill over the possibility of rising prices, the president reiterated: “It’ll only go up if we have to do another hit.”
Trump did not specify what developments could trigger another U.S. attack or what form such an operation might take.
He said, however, that Iranian leaders wanted an agreement because they were seeking to avoid further strikes.
“They want to make a deal,” Trump said. “Look, it’s obvious they don’t want to be hit. Okay? They want to make a deal. So we’ll see.”
Gas Prices Ease on Hormuz Optimism
Trump’s comments came as U.S. gasoline prices edged lower amid growing optimism that normal shipping operations could resume through the Strait of Hormuz, a key oil and gas transit route that has been disrupted by the war.
The national average price for a gallon of regular gasoline fell by three cents over the past week to $4.06, AAA said in an Aug. 6 update. Half of U.S. states now have average prices below $4 per gallon.
Gas prices also typically begin declining at this time of year as schools and universities resume classes and summer road travel slows, the group said.
Crude oil prices have fallen in recent days amid expectations that Hormuz could resume normal operations. Brent crude futures were down 75 cents, or 0.9 percent, at $81.74 a barrel as of 7:41 a.m. ET on Friday, while U.S. West Texas Intermediate futures fell 66 cents, or 0.9 percent, to $76.63.
Still, analysts cautioned that this week’s developments suggest hostilities between Iran and the United States may not be over.
“Developments over the last 24 hours or so demonstrate once again that negotiations between the US and Iran are unlikely to proceed smoothly,” ING analysts said in a Friday note.
“There are suggestions that Iran wants to ban US and Israeli ships from the Strait of Hormuz, while also seeking compensation from hostile countries before they can use the strait again,” they continued, adding that Iran still wants to charge fees for ships transiting Hormuz.
“There doesn’t seem to be much of a compromise, which ultimately makes it more difficult to reach a sustainable deal,” they wrote.
Iran, Oman Near Shipping Agreement
Iran and Oman have reached an agreement on the coordinates of a proposed new shipping route through Hormuz, although officials in Tehran have said the arrangement would not by itself reopen the strait.
Iranian Foreign Minister spokesman Esmaeil Baghaei said on Aug. 5 that Tehran and Muscat were finalizing a joint announcement after reaching a “mutual understanding” on the shipping route.
The proposed arrangement would close the temporary northern route near Iran’s Larak Island and the southern route through Omani waters. A significant portion of the replacement route would pass through Iranian territorial waters, while another section would run through Omani waters.
Iranian Deputy Foreign Minister Kazem Gharibabadi separately said “understandings in principle” had been reached on nearly all aspects of the proposal.
The new route would initially be classified as temporary but could remain in effect for two to four months or longer, according to Gharibabadi.
He stressed, however, that an Iran–Oman agreement “does not mean the Strait of Hormuz will reopen.”
Implementing the arrangement would require a separate decision by Iran’s senior authorities and would largely depend on whether Washington meets Tehran’s conditions regarding U.S. sanctions, frozen Iranian funds, the naval blockade, and the broader regional conflict, he said.
