On July 1, 2026, President Donald Trump renewed his demands that gasoline retailers lower prices to around $2.50 per gallon, warning they "must get their Prices down, IMMEDIATELY!". This follows his order last Wednesday for the Justice Department to investigate major oil companies for potential price gouging.

Trump initially claimed gas prices should be "$2.25 right now at the pump," a figure that contrasts sharply with the current average of $3.85 per gallon, according to AAA. The last time prices were near $2.25 was in May 2020.

When Trump began his second term, the average gasoline price was $3.48 per gallon, with crude oil at $75.44 per barrel. Prices remained relatively stable between $3.20 and $3.60 per gallon through the first year, dipping to $3.19 in January. However, toward late February and into March, gas prices rose by 55 cents—a 16 percent increase—attributed to the president's war in Iran.

The closure of the Strait of Hormuz, a critical passage transporting 20 percent of the world's petroleum, contributed to rising crude oil prices. After U.S. gas prices hit $4 per gallon in late March, crude oil peaked at $112 per barrel in April, per Business Insider. Currently, crude oil prices hover around $69 per barrel, close to pre-war levels.

Moody's estimates the conflict has added approximately $447 in energy costs per American household.

While Trump targets gas companies for the price hikes, data suggests his own policies have significantly influenced the market.

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