• While the U.S. military action in Iran has been a source of many benefits to the U.S., a collateral negative effect has been the increase in world oil prices, and the associated increase in gas prices at the pump for U.S. consumers. An analysis of the increase in gas prices in the context of U.S. gas prices during the past two decades would allow for a more informed and rational discussion of the pros and cons of this Iran conflict.
  • The figure above illustrates U.S. gas prices 2000-2026. During the Obama administration, gas prices quickly increased to $4 and generally stayed between $3 and $4 for most of his term. During Trump 1.0, gas prices mostly stayed between $2 and $3. During the Biden administration, gas prices quickly rose to about $5 and then declined to about $3. During Trump 2.0, gas prices mostly declined, with the exception of March 2026 when prices increased to about $4.
  •  Average gas prices during Trump 1.0 were about 16% ($0.49 per gallon) less than under Obama. Average gas prices during Trump 2.0 have been about 10% ($0.34 per gallon) less than during the Biden administration.
  •    Due to inflation, a dollar in 2010 was worth more (in terms of goods and services that dollar could purchase) than a dollar in 2020, which was worth more than a dollar today.
  •   inflation-adjusted average gasoline prices during recent U.S. administrations. Inflation-adjusted average gas prices during Trump 1.0 were about 24% ($1.20 per gallon) less than under Obama. Inflation-adjusted average gas prices during Trump 2.0 have been about 18% ($0.67 per gallon) less than during the Biden administration.
  • Average gas prices during the current Trump administration are about $0.34 per gallon less than during the Biden administration. Inflation-adjusted average gas prices during the current Trump administration are about $0.67 per gallon less than during the Biden administration.

Source: dailysignal.com