Key facts
- President Donald Trump will meet with U.S. refiners and fuel retailers next week.
- The meeting's objective is to discuss lowering gasoline prices for consumers.
- The Iran war has contributed to higher oil and gasoline prices by disrupting energy flows.
- U.S. regular gasoline prices are currently over $4 per gallon.
- The meeting is timed ahead of the November midterm elections.
President Donald Trump is set to convene with U.S. refiners and fuel retailers next week to address strategies for reducing gasoline prices. This meeting comes as the administration seeks to alleviate consumer financial strain caused by the ongoing Iran war, with the November congressional midterm elections approaching.
The conflict has significantly impacted global energy markets, disrupting flows through the Strait of Hormuz, which previously handled 20% of the world's oil. This disruption has pushed U.S. regular gasoline prices above $4 a gallon, a roughly $1 increase compared to the previous year. Oil prices had surged to as high as $112 a barrel during the war, though they have since retreated somewhat as shipping through the strait has partially resumed.
The high stakes for Trump and the Republican party, who are defending narrow majorities in Congress, are amplified by the war's increasing unpopularity and the threat of high gasoline prices to Trump's promise of lowering the cost of living. Polling indicates a drop in Trump's approval rating, with a low percentage of Americans approving of the conflict.
Major U.S. oil companies and refiners, including Valero Energy Corp, Marathon Petroleum Corporation, and PBF Energy Inc, have reported strong second-quarter earnings, benefiting from the tightened supply of gasoline and other refined products. These profits have drawn criticism from Trump, who has publicly urged oil companies to lower prices for consumers.