5
#000000
#FFFFFF
Economy
Trump's Iran War Will Cost US Families $1,753 Extra at the Pump This Year: Analysis
"Instead of swindling taxpayers to pay for his gilded ballroom and finding new ways to give CEO billionaires tax breaks, Trump should focus on ending his war on Iran," said Sen. Ed Markey.
May 07, 2026
An updated analysis released Thursday finds that President Donald Trump's illegal war with Iran will cost Americans significant money at the gas pump this year.
The report, released by the office of Sen. Ed Markey (D-Mass.), projects that if gas prices remain at their current level of over $4.50 per gallon, it will cost a US drivers an extra $73.06 per month—or $876 per year—to fill up their cars compared to what they were paying before Trump attacked Iran in late February.
For a family with two cars, this would mean forking over an extra $1,753 for gas this year.
The analysis also notes this projection is "likely an underestimate" since "many analysts predict gasoline prices will rise higher without a permanent end to the war."
The report highlights how Trump's Iran war is likely to bolster Big Oil's profits, which had been steadily declining since 2022, when they exploded in the wake of Russia's invasion of Ukraine.
Climate and renewable energy organizations have repeatedly called on the US Congress to pass a windfall tax on Big Oil profits for the duration of the war, which they said could be used to provide relief to consumers and invest in clean energy infrastructure.
In a statement accompanying the report, Markey blasted Trump for both the Iran war and his broader economic mismanagement.
“American small businesses and families cannot afford Trump’s crushing bump at the pump—all thanks to the President’s illegal war on Iran," said Markey, the top Democrat on the Senate Small Business Committee. "Americans have to figure out how to make ends meet while Trump slashes affordable healthcare, dismantles clean energy networks, and doubles down on his tariff taxes."
"Instead of swindling taxpayers to pay for his gilded ballroom and finding new ways to give CEO billionaires tax breaks," Markey added, "Trump should focus on ending his war on Iran and ending the pain on Main Street."
Keep Reading
Show Less
Trump Agriculture Chief Claims ‘Golden Age’ Is Coming. US Farmers Say They’re ‘Barely, Barely Getting By’
"These rising costs are hitting us at the wrong time here," said one farmer of the high prices of diesel and fertilizer.
May 07, 2026
US Agriculture Secretary Brooke Rollins on Thursday claimed American farmers are heading toward a "golden age," even as President Donald Trump's policies are increasingly driving them into financial distress.
During an appearance on Fox Business, Rollins discussed Trump's upcoming meeting with Chinese President Xi Jinping to talk trade between the two countries.
"For our farmers and our ranchers, for farm security, for food security, making sure our farmers can prosper as they move into what will hopefully be a golden age under this president, these trade deals are very important," Rollins said. "But the president also understands that the over-reliance on a country like China has massive implications from a national security standpoint."
Brooke Rollins: "Farmers are moving into hopefully what will be a golden age under this president" pic.twitter.com/y2FRfZZVR3
— Aaron Rupar (@atrupar) May 7, 2026
American farmers took a big financial hit in 2025 after China cut off purchases of US soybeans in retaliation for Trump's "Liberation Day" tariffs.
The problems facing US farmers have gotten even worse since Trump illegally launched a war with Iran in late February, as the prices of fertilizer and diesel soared after Iran shut down the Strait of Hormuz.
According to a Monday report from Wisconsin Public Radio, there is little immediate relief coming for US farmers even if Trump ends his war with Iran and the Strait of Hormuz immediately reopens.
Shawn Arita, associate director of the Agricultural Risk Policy Center, told WPR that price projections show fertilizer prices will likely remain high throughout the rest of the year.
In fact, even if the strait were to reopen soon, the center projects that fertilizer prices will remain 13% higher than they were before the war started through all of next year and into 2028.
"We have seen that even in the most optimistic scenario," Arita explained, "we're going to see elevated prices on the nitrogen as well as phosphate side that continues on through the fall and moving into 2027."
Bill Knudson, agriculture economist at Michigan State University, told WPR that it will also take time to get shipping back to normal should the strait reopen soon because there are still an estimated 2,000 vessels stranded there that will take time to clear out.
"You’re not going to see a return to normal for several months, even if the Strait of Hormuz was opened relatively quickly," Knudson explained, "because you’ve got to get all those ships out of there."
The Guardian on Thursday published interviews with US farmers who explained how the combined hit of the president's trade wars and the Iran war have hurt them financially.
New York-based farmer Blake Gendebien told The Guardian that "these rising costs are hitting us at the wrong time here," as the price of offroad diesel has nearly doubled since last April.
"It’s a massive cost for farmers that are already barely, barely getting by," Gendebien explained.
North Carolina-based cotton farmer Julius Tillery told The Guardian that he's had to overhaul his planting process this year to minimize his use of diesel fuel.
“I’m very careful on my planting dates," said Tillery, who also revealed he's been eating more ramen noodles to save money. “I can’t afford to plant crops in bad climates, so the production window becomes smaller.”
Keep Reading
Show Less
'You Have Unleashed Chaos': Dems Push Trump to Come Clean on Scale of Economic Destruction From Iran War
"Americans deserve to know whether your administration considered the many ways your war would increase the day-to-day cost of living," the lawmakers wrote in a letter to the president.
May 06, 2026
A group of US House Democrats is demanding that President Donald Trump be transparent with the American public about the extent to which his administration planned for the dramatic price hikes caused by the war in Iran over the past two months.
"You have unleashed chaos, undermined our national security, and escalated the conflict by threatening war crimes, including wiping out an entire civilization and destroying civilian infrastructure," says the letter sent to the president on Wednesday by the five Democrats, who all serve leading opposition roles in House committees.
The letter was signed by Rep. Robert Garcia (D-Calif.), the ranking member of the House Committee on Oversight and Government Reform; Rep. Frank Pallone Jr. (D-NJ), the ranking member of the Committee on Energy and Commerce; Rep. Angie Craig (D-Minn.), the ranking member of the Agriculture Committee; Rep. Jared Huffman (D-Calif.), the ranking member on the Natural Resources Committee; and Rep. Don Beyer (D-Va.), the senior House Democrat on the Joint Economic Committee.
Gas is over $6 bucks a gallon in parts of California. Instead of lowering prices, President Trump is spending a billion dollars a day on a war with no mission and no end in sight. What happened to America First?
— Robert Garcia (@RobertGarcia) May 5, 2026
The Democrats accused Trump of having launched the war "without coherent or realistic strategic objectives," and without a plan in the event that Iran restricted travel through the Strait of Hormuz, which has led to economic havoc.
"The impacts of your war will be felt for years, and the consequences of your reckless decision to drag America into war are increasingly falling on the American public," the lawmakers said.
They cited reports that consumer prices are now growing faster than at any point in nearly two years, with no sign of slowing down due to a 50% spike in crude oil prices, which has also driven gas prices above $4.50 per gallon on average across the US, up more than $1 from the war's beginning.
These oil shocks have rippled through the economy, raising the cost of airline tickets, home utilities, shipping, and numerous consumer goods. The blockage of the strait has also hampered fertilizer shipments, leading to spikes in food prices.
The lawmakers also noted the cost of the actual war to US taxpayers, which was reportedly about $2 billion per day during the first week of attacks.
While the Pentagon has claimed the war has only cost about $25 billion since it began in late February, Stephen Semler, a senior fellow at the Center for International Policy, estimates that when armament use, troop deployments, and other factors are considered, the true cost over 60 days has been more than $71 billion, almost three times higher.
Trump said during a press conference on Tuesday that when he decided to launch the war, he expected price increases to be even worse than they turned out to be.
"I also thought oil would go up to $200, $250, maybe $300, and I knew it would be short-term, but I thought it would go. I looked today, it's, like, at $102," he said, referring to the price of a barrel of oil. "That's a very small price to pay for getting rid of a nuclear weapon from people who are really mentally deranged."
The American public does not seem to agree. Trump's approval rating has plummeted to unseen lows since the war began, with just 35% now approving of his handling of the economy, according to an NPR/PBS News/Marist poll out Wednesday.
The same poll found that more than 8 in 10 said gas price hikes were straining their household budgets, and a majority (63%) blamed Trump for the increases. Roughly the same percentage said the overall economy was not working well for them personally, while 61% said they believed the war in Iran had done more harm than good.
The Democratic lawmakers inquired about the extent to which the Trump administration had prepared for Iran to cut off the Strait of Hormuz, which they said had been "long predicted" by experts.
They pointed to statements by administration officials, including US Secretary of Energy Chris Wright, who said just over a week before the war was launched that, thanks to Trump's "energy dominance agenda," prices would likely only "blip," as they had during June's 12-day war.
They also cited reports that Trump "did not consult" with Wright, Treasury Secretary Scott Bessent, or Director of National Intelligence Tulsi Gabbard to assess the likely impacts of an attack on oil markets.
The lawmakers noted predictions from the Organization for Economic Cooperation and Development (OECD) in March that the war will push inflation to 4.2% this year, up from 2.6% the previous year. Analysts have predicted that an increase in inflation to just 3% would cost the average household with $5,000 in monthly expenses an extra $1,800 per year.
Asking Trump to provide documents detailing the White House's communications with executive agencies, the lawmakers said, "Americans deserve to know whether your administration considered the many ways your war would increase the day-to-day cost of living, and what steps you are now taking to protect Americans from the fallout of your foolhardy rush to war."
Keep Reading
Show Less
‘Epic Insider Trading’: Nearly $1 Billion in Crude Oil Shorts Taken Just Before Report of US-Iran Peace Deal
"Only a select few in the top tax bracket are benefiting from this, and the majority of you ain’t in it," said former Rep. Marjorie Taylor Greene.
May 06, 2026
Observers are once again raising concerns about insider trading on Wednesday after a trader took a colossal crude oil short position just over an hour before a US-Iran peace deal was reported to be on the horizon, causing prices to fall.
The Kobeissi Letter, a financial newsletter, reported on X that at 3:40 am on Wednesday, "nearly 10,000 contracts worth of crude oil shorts were taken without any major news."
This was equivalent to $920 million in notional value, which the letter described as "an unusually large trade" so early in the morning. But it would soon pay off.
At 4:50 am, just 70 minutes later, Axios published an exclusive scoop by Middle East reporter Barak Ravid that the White House believed the US and Iran were on the verge of agreeing to a one-page "memorandum of understanding" to end the war, which included more nuclear negotiations, one of the key sticking points for US President Donald Trump.
By 7:00 am, just over two hours after Axios dropped its report, oil prices had fallen by 12%, allowing the savvy investor to make $125 million in a matter of hours, which led to accusations that it was yet another example of "epic insider trading" by those in the know about Trump's plans.
Prices have since rebounded by about 8% after Iran announced the creation of the new "Persian Gulf Strait Authority," to mediate the passage of ships through the Strait of Hormuz on its terms.
The Trump administration has already been deluged with accusations that its members are using insider information to take advantage of financial markets and prediction market apps.
Last month, an active-duty US special forces soldier was indicted by the Department of Justice after he made about $400,000 betting on Polymarket that Venezuelan President Nicolás Maduro would be removed from power, a bet he allegedly placed using classified information about an operation he himself was involved with.
More bettors collected around $1 million in profits from bets on the specific timing of Trump's war with Iran in late February. The Financial Times also reported a surge of more than $580 million in oil futures trading right before Trump announced a pause in strikes on Iran's energy facilities in March.
Of course, Wednesday's bet theoretically could have been made without the aid of insider information.
The new peace framework is the latest in what has seemed to be an endless pattern over the past several weeks in which US officials tell media outlets that a peace agreement is on the horizon, causing oil prices to dip, only for it to collapse later in the week, often with Trump issuing hostile threats or making new demands.
It has become such a familiar story that some have speculated that the announcement of productive ceasefire talks is deliberately choreographed to calm oil markets and bring down prices, which have become a growing problem for Trump among voters.
But as The Economic Times explained, the bet placed Wednesday morning likely "is not a routine hedge" or "a portfolio rebalancing move."
"At that hour, in that size," it said, "a crude oil short of that magnitude is a deliberate, high-conviction directional bet."
Former Rep. Marjorie Taylor Greene (R-Ga.), a one-time Trump cheerleader who's become one of his leading critics, suggested Trump's erratic approach to negotiating an end to the war was just a tool used by him and his allies to profit.
"When is everyone going to start realizing that the on-again, off-again war/peace rhetoric is really just insider trading? And sprinkle in some murder," Greene wrote on social media. "Only a select few in the top tax bracket are benefiting from this, and the majority of you ain’t in it."
Democrats in Congress have urged the Securities and Exchange Commission (SEC) to investigate what Sen. Chris Murphy (D-Conn.) suggested could be "mind-blowing corruption" by the White House, not only related to Trump's wars, but also to his tariff regime, which has caused similar market chaos that bettors have been able to capitalize on with fortuitously timed wagers.
But critics have described profiting from the machinations of a war that has killed more than 1,700 civilians as particularly grotesque.
"This has to stop," said Fox News commentator Jessica Tarlov. "Lives on the line so they can insider trade!"
Keep Reading
Show Less
Most Popular