US gasoline touched 4-year high of $4.30/gallon mid-week but already falling to ~$4.18; Trump says prices will 'drop like a rock' after Iran war
What happened
The average U.S. price for a gallon of gasoline touched $4.30 mid-week per AAA (reported by Al Jazeera), the highest level in four years, since late July 2022 — but AAA data shows prices were already declining, not rising: the national average fell for six-to-seven consecutive days to roughly $4.18-4.20 by Saturday, down about 11 cents over the past week and roughly 25 cents from a month ago (the switch to cheaper winter-blend gasoline helping; crude near $100+ limiting the decline). Diesel averaged roughly $6.30 nationally. President Trump, asked about the increase, said gasoline prices will 'drop like a rock' as soon as the war with Iran ends, while insisting 'time is on his side' and refusing Tehran's offers of a preliminary deal to reopen the strait.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Energy (XLE, refiners benefit from wider crack spreads); consumer discretionary, airlines and transports face margin pressure; the broad market via higher inflation expectations and Fed-hike odds; gasoline-linked inflation exposure across consumer staples and retail.