Trump wants to reduce the cost of fuel as the midterms loom - will it work?

Key Points:

• Gasoline and diesel prices in the US have more than doubled since the US-Israel conflict with Iran began, significantly impacting transport businesses, farmers, and consumers ahead of the midterm elections.
• President Trump has taken measures such as waiving federal taxes on red dye diesel for highway use and pushing the G7 to release 100 million barrels of oil to ease fuel costs, though these are seen as temporary solutions.
• Rising fuel prices are linked to restricted global oil supplies due to the Middle East conflict and the Russia-Ukraine war, contributing heavily to inflation and economic strain on households and businesses.
• Trump has proposed suspending federal gasoline taxes and encouraged states to cut their fuel taxes, but federal tax suspension requires Congressional approval and could be costly for governments.
• Analysts warn that even if geopolitical conflicts resolve, fuel prices will remain high for months due to damaged infrastructure in the Middle East and ongoing supply challenges.