The overnight Wall Street Journal report that President Trump told aides he is willing to wind down the U.S. military campaign against Iran even if the Strait of Hormuz remains disrupted (and appeared to confirm this narrative in a social media post this morning) comes just as the national average gasoline price hit the politically sensitive $4-a-gallon threshold, underscoring the delicate balancing act the administration is facing in managing battlefield objectives and domestic fuel costs.
The latest AAA data shows gasoline prices nationwide topped $4 a gallon on Monday, a 35% increase for Regular 87 at the pump and the largest price shock on record dating back to 2004.
Regular 87 gasoline prices at the pump nationwide have returned to the price shock levels seen during the 2022 Russia-Ukraine crisis.
Largest monthly price shock on record.
Early last week, Bonnie Herzog, managing director and senior consumer analyst at Goldman Sachs, wrote in a note that when fuel prices spike to these “psychological threshold” levels, above $3 and approaching $4 a gallon, consumers tend to drive less and fill up their tanks less frequently.
“Historically, when retail gas prices increase (especially above the $3/gal psychological threshold, although that’s been rebased higher), consumers make the concerted decision to drive less, don’t always fill up their tanks (i.e., lower fill rates),” Herzog told clients.
But Herzog pointed back to history, noting that the real demand destruction for drivers comes when gasoline prices at the pump reach $5 a gallon.
She noted, “Further, we recognize that, in times of a significantly rising fuel-price environment, consumers may opt to trade down the fuel-price spectrum (i.e., from premium to regular).”
Furthermore, AAA data shows the national average diesel price has surged 45% this month to $5.45 per gallon. That marks the largest spike on record.
The price shock is already sending shockwaves through the real economy. Diesel powers the industrial backbone of the nation: trucking fleets, rail networks, shipping, farm equipment, construction machinery, backup generators, and broad segments of heavy logistics. When diesel prices spike this quickly, cost shock hits companies at the pump, with logistics firms passing fuel surcharges on to customers.
We warned readers on Monday about the unfolding “global demand destruction” and noted that the energy shock was already beginning to ripple outward from Asia.
All by design, with Iran’s leaders being in on it as well…the “great reset” needs it!
On that we can agree.
So true, DL. The thing that gets me is that the people of Iran still suffer the consequences, just like in Gaza and on so many other war fronts. I envision a universal t-shirt that reads:
I AM NOT MY GOVERNMENT
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The good are being murdered in droves. And what do we get?… All the conflicting reports: We’re winning/we’re losing. Israel is strengthening/Israel is dead. Old spooks, new spooks, vets and retired vets, all weighing in on everything we’re doing wrong and everything we’re doing right.
And Tucker playing dumb, while in his own sly way boosting up partisan politics. I heard him say the other day that if the republicans aren’t careful, they’ll all be booted out. F you Tucker. You mean you’re still giving credence to the voting circus?!! Get with The Bill of Rights and start calling out our jewish captors.
The American people are bleeding for Israel. And anyone around the world that thinks we’re all rich, you’ve no idea the poverty that exists here, or the suffering. We are not our government, and we’re certainly and unequivocally not Israel’s either.
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From the Iranian Press TV website –
“33 days on, US war goals unmet as Iranian retaliation imposes heavy military, economic costs”
https://www.presstv.ir/Detail/2026/04/01/766186/33-days-us-war-goals-unmet-iranian-retaliation-imposes-heavy-military-economic-costs
Yep, ALL the media channels love to throw that number around don’t they?!
Always interesting to get the “news” from the other side though – https://www.presstv.ir