Diesel fuel prices hit a record high Wednesday while gas prices jumped another 7 cents in a single day, and the stock market headed for another sell-off because crude oil prices rose above $100 per barrel again.
The timing could not be worse for Republicans, who have gathered in Dallas to fine-tune their message ahead of midterm elections that are focusing on the cost of living.
The Republican National Committee said it will contrast the Democrats’ “radical policies” with their efforts to lower costs and establish energy dominance. However, the Republican message is undercut by a midweek surge in costs tied to President Trump’s war against Iran.
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Brent crude futures traded above $100 per barrel for the first time since July because of an increase in strikes between the U.S. and Iranian militaries and Tehran-backed Houthi attacks on oil facilities in Saudi Arabia.
Stocks fell on the second day of the holiday-shortened trading week as investors sized up the war and its effect on oil prices.
Crude oil is the main ingredient in gasoline, so American drivers are paying more.
The average price of gas was $4.22 per gallon Wednesday, up 7 cents from Tuesday and 42% from the start of the war in late February, according to AAA.
Diesel set a record of $5.94 per gallon Wednesday, an increase that could raise prices of other goods as shippers pass along higher fuel costs.
Mr. Trump says the U.S. and Israel are winning the war against Iran, which was launched jointly Feb. 28 to prevent Tehran from acquiring a nuclear weapon, among other stated goals.
The president has tacitly acknowledged the economic pain, though mainly to say it will be short-lived. He said relief will come, though probably after the November contests.
“Right after the election, oil prices are going to be tumbling downward,” Mr. Trump said Wednesday. “We’ll get them below $2 a gallon. I think it’s going to take a little bit longer than the midterms.”
Both nights of the first-of-its-kind Republican midterm convention will focus, in part, on “affordability,” the central theme of this election cycle, though official RNC programming documents list night one’s topics as tax cuts, healthcare, immigration, border, trade and manufacturing.
Public polling shows voters stress the economy and the cost of living over other issues.
Mr. Trump is keenly aware of the concern but says Democrats are to blame for the high inflation that peaked during the Biden administration.
The president points to signs that inflation stabilized in recent months and recounts how he got egg prices under control in the first weeks of his term.
Yet Republicans are battling sagging poll numbers and fretting over competitive races in once-solid districts.
The party controls both the House and the Senate, but could lose both chambers in November if Republican candidates fail to win close, swing-district races and statewide races.
Key races in typical Republican strongholds, including the Senate races in Texas and Iowa, are suddenly competitive as Democrats hammer Republicans over the high cost of living that is vexing voters.
The Democratic National Committee on Wednesday mocked Mr. Trump over high gas prices as Republicans convened in Dallas.
“As Donald Trump and his Republicans kick off their dog-and-pony show, everyday Americans are grappling with gas prices that just keep getting more expensive,” DNC spokeswoman Kendall Witmer said. “Instead of providing any relief to working families or fixing the mess they created, Republicans are focused on inflating Trump’s ego. Voters will remember who is fighting to lower costs come November.”
The Trump administration is pointing to workarounds to get oil flowing from the Middle East and restore flows through the Strait of Hormuz to prewar levels.
Iran clamped down on shipping in the strait, disrupting global supply and rattling markets, but Mr. Trump imposed a naval blockade to direct ships through the channel.
“President Trump remains committed to unleashing American energy dominance, cutting costs, and putting more money back in the pockets of hardworking American families,” White House spokeswoman Taylor Rogers said Wednesday. “Last week, the president met with nearly a dozen refiners to discuss ways to expand our refining capacity, which will lower prices at the pump. As the U.S. continues to maintain full control of the Strait of Hormuz, oil and gas prices will fall back to pre-conflict levels.”
• Susan Ferrechio contributed to this report.
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