President Trump spoke at a recent campaign rally about elevated oil prices and gains in the domestic energy sector. He noted that prices should drop sharply once the conflict ends, pointing to oil tankers waiting in the Strait of Hormuz and saying the United States should get them moving quickly. Trump stated that the United States oil and gas business is “making hundreds of billions of dollars,” with buyers turning to operations in Texas, Oklahoma, and Louisiana.
He described the country as making money from oil in ways it never has before, also referencing resources in Venezuela and Greenland. Trump said advisers urged him not to highlight the earnings because consumers are still facing higher costs, though he expected prices to ease. He added that current levels remain below those under previous administrations.
Regular unleaded gasoline is averaging $4.29 a gallon nationwide, 40 percent higher than in October 2025. Diesel has reached $6.32 a gallon, nearly 75 percent above last year. The University of Michigan’s October consumer sentiment index ranked as the second lowest since records began in 1978. The lowest reading of 44.8 came in May, when the national average for unleaded hit a four-year high of $4.56 amid supply disruptions tied to the war with Iran.
Price increases hit drivers in multiple states as oil benchmarks rise
Refinery issues have driven sharp local jumps. In Michigan, a gallon of unleaded reached $4.77, up 33 cents since Wednesday. Ohio saw prices at $4.37 after a two-day increase of 39 cents, with similar moves reported in other Great Lakes states. Brent crude closed Friday at $116.72 a barrel, its highest level in six months.
Gregory Brew, a senior analyst at Eurasia Group, said there is broad consensus that further escalation could reduce oil flows from the Middle East. “Right now, a lot of oil is coming out, but it’s expensive,” he added, according to CNN. “There is very little confidence that supply is sustainable.”
Consumer sentiment stands 10 percent below its level a year earlier and 15 percent lower than in February, before the war started. Joanne Hsu, director of the University of Michigan Surveys of Consumers, said people are frustrated because their buying power has fallen while prices keep rising. In October, 56 percent of those surveyed spontaneously mentioned higher prices hurting their personal finances, a share that has grown for four straight months.
Hsu noted that the increases appear across the political spectrum, with Republicans showing the largest proportional rise. Consumers with no stock holdings or only small ones reported growing concern about prices over the year. Those with the largest stock holdings saw little change in the burden since February, she said. Homebuying conditions have dropped sharply, with 85 percent of respondents calling it a bad time to purchase a home.
Year-ahead inflation expectations edged up to 4.7 percent from 4.6 percent, while longer-term expectations moved to 3.5 percent from 3.4 percent. The Federal Reserve’s rate-setting committee meets next week, with its decision due Wednesday. Major producers have reported strong results. ExxonMobil posted Q2 2026 profits of $14.5 billion, more than double the year-earlier figure, while Chevron earned $12.1 billion, according to reports from Al Jazeera.
U.S. crude and petroleum product exports reached a record nearly 12.9 million barrels a day as buyers in Europe and Asia turned to American supplies after the conflict and Strait of Hormuz disruptions affected roughly 20 percent of global oil. West Texas Intermediate crude rose from around $67.02 a barrel before the war to roughly $99.85, and Brent climbed above $112.
Trump has also disputed Hormuz’s role in gas prices. The President said he had been advised to speak carefully because headlines might claim he was bragging about profits while people pay more at the pump. “I don’t give a d–n. I’m going to say it. We’re making a frickin’ fortune,” he stated, adding that the country is getting stronger all the time.
Published: Oct 25, 2026 05:30 am