Trump’s Claims on Gas Prices and Oil Refinery Disruptions
On Monday, President Trump stated that the rising cost of gas is due to disruptions at oil refineries, rather than Iran’s closure of the Strait of Hormuz. This comment followed the outbreak of conflict between the U.S., Israel, and Iran. According to Trump’s post on Truth Social, the surge in gasoline prices is linked more to ‘Refineries,’ particularly impacted by conflicts such as Russia’s oil refineries being targeted by Ukraine.
Trump referred to Democratic officials as ‘Dumocrats’ while highlighting closures of refineries in states like California. Tom Kloza, Gulf Oil’s chief petroleum analyst, mentioned that Trump’s insight is “partially right.” Kloza explained that crude oil prices from the Persian Gulf had escalated to $33 per barrel from $1.75 in February. He added that the risk premiums and insurance, alongside some attacks on vessels, contribute to this increase.
Trump also claimed in another post that Ukrainian military actions have impaired Russia’s control over its diesel oil industry. He mentioned conversations with Ukrainian President Volodymyr Zelensky, stating that Ukraine has claimed responsibility for disabling half of Russia’s oil refining capacity. This disruption, spanning from Moscow to Siberia, has caused significant fuel shortages.
Efforts to end Russia’s conflict with Ukraine have been part of Trump’s agenda, amidst the ongoing situation with Iran. Both conflicts have disturbed global energy markets. The closure of the Strait of Hormuz by Iran has pushed gas prices nearly to a national average of $4.50, compared to last year’s average of $3.13, as reported by AAA.
The U.S. reported an average gas price of $4.37 on Monday, with diesel reaching $6.53 on average. Negotiations led by U.S. special envoys Steve Witkoff and Jared Kushner aim to resolve the four-year conflict between Russia and Ukraine. These discussions involve potential deals that could benefit Middle Eastern business interests.
As midterm elections approach, gas prices have become a significant political topic. Many Republican figures argue that resolving the conflict with Iran is crucial for lowering gas prices.